I'm curious as to what the difference between the Interest Rate and Annual Percentage Yield is.
For example: This Bank I was looking at offers 0.45% interest rate on savings account balances over $100,000. It also has an APY of 0.45% on balances >$100,000.
I'm not interested in opening a savings account with $100,000+ for 0.45% so I'm not looking for feedback on whether that's a good idea or not, I'm just curious as to when they numbers are different, and why. I know they can be different with government bonds, but I would like a simplified example.