# Beat Inflation: Save Bank of Euler

1. Home
2. /
3. Beat Inflation: Save Bank...

With banks giving about 0.1% interest on savings, and stock investments being rather risky, here is an institution, the Euler, pronounced “Oiler”, Bank, which will do very well by your savings. The bank gives only 1% interest, not that much more than 0.1%, but to see the efficacy of a bank to generate money, we also have to look at the compounding of a deposit. Let’s let your deposit be \$1.00 and look at some compound rates @ 0.1%.

## Compounding of Deposits

Compounds/Year   Yield

1                      1.010025

10                   1.01004512

100                1.010049662

1000              1.010050117

The table shows that as the number of compounding per year increases yield increases. But this bank offers a more interesting compounding feature. The Euler bank compounds not annually, not monthly, not daily, not hourly, not minutely, not secondly, not — well, let’s just end this by saying it compounds infinitely often in a year – a mathematician would say it compounds continuously.

One dollar deposited in the Euler bank will yield more than \$2.718281828…, which amounts to 271.8281828…% in a bank compounding yearly. This percentage value is special in that it appears in many other mathematical contexts. The value has been called “e” after the founder of the bank, Euler.

## But There is No Euler Bank!

As of now there is no Euler bank in the U.S. In fact there are none in any country that I have investigated. Let’s all keep looking, and be sure to tell me if you find one.

Note: You might also enjoy Is Economics a Science? Giffen’s Paradox Shouts “No!”