Consider the following two scenarios:

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Method 1: I have 3 separate sums of money, each one at $30,000. So they add up to $90,000. Now, I place each of these sums in 3 different banks for 3 months (fixed deposit promos).

Assume each bank is offering 3% interest. Every 3 months, I would then take out these 3 sums and put them back again (either in same banks or different banks) for another 3% interest, and repeat this until 1 year is up.

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Method 2: I have 1 lump sum of money at $90,000. I place them all in one bank for 1 year straight and the interest rate is also 3%.

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After 1 year, which of the two scenarios will yield better returns in terms of interest rate?

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I asked ChatGPT about this and it says Method 1 will yield far higher rates after a 1 year period (Method 1 will give about $10k in returns while Method 2 will give $2k+). Is this correct? Sorry, my math is very poor and need people who are good at maths to gauge this for me. 🤣🤣🤣

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Thank you!

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