Please explain simply; APR and APY when comparing online Savings account rates?
In layman’s words, APR(annual percentage rate) is interest rate you will get on your money . Usually it is compounded monthly, so its kind of hard to calculate how much money you will earn over a bigger period of time, say a year. APY (annual percentage yield) tells you upfront that if you put $X in account you will get X*APY/100 dollars as interest after a year.
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