Suppose for its deposit accounts Simplii Financial is offering to pay interest at a rate of 0.25% per month with monthly compounding, but Tangerine is offering to pay interest at a rate of 0.75% per quarter with quarterly compounding. (One quarter is equal to three months.) Which financial institution is offering the higher rate? The higher rate is being offered by Tangerine Simplii Financial because the effective annual rate of Simplii Financial is nothing and the effective annual rate of Tangerine is nothing.