I'm looking for a bank that offers the best interest rates ,, does anyone know ??

I would like to open a business account for a daycare center... I have been told that there are banks that offer compound interest.

can anyone explain { compound interest to me ,, and tell me how to find such a bank ??

try HSBC bank USA, they give a whopping 5.05% interest rate, http://www.us.hsbc.com/1/2/3/personal which is far higher than any other bank ive come across. You can also try ING which is 4.40%, the link is http://home.ingdirect.com/ hope that helps, good luck!

Usually business accounts do not get paid interest.

Compound interest is more often applied to savings. Let's say you put $100 in a saving account and get 6% for two years. Simple interest, first year, Original $100, plus $6 interest. Second year, original $100, plus another $6, or you have made $12.

Compound interest. Same deal. End of the first year, $106 as above. Second year you have made interest on the original $100 plus the $6, or $6.36.

So you made 36 cents by compounding.

But ask at several banks, there may be some that will pay interest. Although I find the best deal are the ones that offer free checking. The no monthy charge more than makes up for the small interest rate they might pay.

ING Direct has 4.35% variable

You definitely need to look up the dictionary, buddy. The term "compound" means "interest on interest". For example, if you have three dollars, and interest is calculated at 50% per day compounded at the end of each day, then at the end of the first day, you will have 3 + 1.5 dollars = 4.5 dollars. At the end of the second day, you will have 4.5 dollars + 2.25 dollars = 6.75 dollars. At the end of the third day, you will have 6.75 + 3.375 dollars = 10.125 dollars. Ask your banker for details and the differences between annualized and compounded. There's a whole lot of difference here. You should shop around the banks. You definitely need accounting background to have a successful business that isn't going to close due to cashflow problems even if it is profitable. *Tip: Make sure you always have enough cash to cover your short term payables.

check out www.bankrate.com for what banks are paying (interest) and what kinds of accounts there are. Unless you are leaving the money in on a long term basis, you won't see a whole lot of interest. Watch for any fees imposed by the banks if you are thinking about checking accounts. Most banks not only don't offer interest for checking but rather charge per check and service fees and all kinds of neat stuff that makes your account cost more than the interest received from it. Compounding, as earlier explained, simply adds interest to the previous balance and then your next interest is paid on that previous total. Unless you are talking of a few hundred thousand dollars of money sitting in your account, interest isn't much to get excited over.

Fidelity offers many CD's from all around the country, with decent interest rates and time frames to be vested. Many for only 3 months, and the banks and rates are changing daily. You can actually shop for the best. www.fidelity.com