To break it down, APY, or Annual Percentage Yield, is the interest you earn on money stored in a savings account, while APR, or Annual Percentage Rate, is the interest you owe when you borrow from the bank. It’s important to know the difference between these two key terms as they impact your finances, especially when investing or taking out a loan. APY and APR affect how your interest is ultimately calculated. Knowing the difference between APR and APY could help you earn more or owe less money.
APY “Annual Percentage Yield” is the …Read More »