I don't understand how to compare my loan's interest rate to my savings account interest rate.
My savings account states:
The Interest Rate on your account is 4.0249% with an Annual Percentage Yield of 4.10%
Interest on your account will be compounded and credited on a monthly basis.
My loan states:
Interest Rate: 2.75%
Interest on your account is calculated using a simple daily interest formula. Simple interest is a formula that multiplies your loan balance by the number of days since the last payment, times the interest rate factor. Interest accrues daily on your loans.
Should I put excess income towards the loan or savings?