APY vs Interest Rate: What’s the Difference on a CD?
Your CD paperwork shows two different percentages — an “interest rate” of, say, 4.40% and an “APY” of 4.50% — and no explanation of why they don’t match. The difference isn’t a fee or a trick. It’s compounding, and once you see it, every savings product in the market becomes easier to compare. Quick answer: … Read more