Bank a pays 10% interest compounded annually on deposits, while bank b pays 9% compounded daily. a. based on the ear (or eff%), which bank should you use? you would choose bank a because its ear is higher. you would choose bank b because its ear is higher. you would choose bank a because its nominal interest rate is higher. you would choose bank b because its nominal interest rate is higher. you are indifferent between the banks and your decision will be based upon which one offers you a gift for opening an account.