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Yield note 1

APY and interest rate: related, not identical

Banks often show an interest rate and an APY. The APY folds in compounding so you can compare products more fairly.

Reading 1

Why two numbers

Compounding frequency changes how much you earn from the same nominal rate.

Reading 2

Truth in Savings

U.S. rules ask institutions to disclose APY so shoppers can compare.

Reading 3

Variable yields

Many savings APYs can change. Read whether the rate is variable.

Reading 4

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