{"id":16808,"date":"2019-08-19T14:31:37","date_gmt":"2019-08-19T13:31:37","guid":{"rendered":"https:\/\/traders-paradise.com\/?p=16808"},"modified":"2019-11-08T14:57:28","modified_gmt":"2019-11-08T14:57:28","slug":"what-is-apy-and-how-to-calculate-it","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/08\/what-is-apy-and-how-to-calculate-it\/","title":{"rendered":"What Is APY and How to Calculate it"},"content":{"rendered":"

2 min read<\/em><\/p>\n

\"What
It means the annual percentage yield<\/figcaption><\/figure>\n

APY means annual percentage yield. The majority of savings accounts have APY, also you can find that some of the checking accounts have it. <\/span>If you are considered of saving money on your bank account you should know more about APY.<\/span><\/p>\n

APY is the amount of money or interest, you receive on a bank account. The compound interest is added also. <\/span>As a difference from interest rate APY is factoring compound interest.<\/span><\/p>\n

Interest rate means that you can earn exactly the same amount of interest per month because it doesn’t compound.<\/span><\/p>\n

Compound interest, on the other hand, is the interest you earn on the money you set into your bank account plus the interest you get overtime.<\/span><\/p>\n

Basically, it is the income you can get on your money savings if you leave it in the account for longer than one year.<\/span><\/p>\n

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