# Questions tagged [apy]

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### Should I pay off mortgage or invest in CD?

I am confused about the mortgage rates in APR vs CD rates that I could invest in [US]. I have a mortgage loan that I got with 2.875 APR. I could pay that off or invest that money in a CD with rate of ...
• 263
1 vote
89 views

### If APY factors compounding (while APR doesn't), shouldn't APY always be higher than APR?

So, from what I understand: APR: rate advertised to borrowers (without compounding) APY: rate advertised to lenders (with compounding) So, for a loan with APR of 6%, that compounds monthly: APY = (...
223 views

### How to calculate the APY of an investment account?

I find it helpful to view every kind of account in terms of its current value and APY rate. I know it doesn't technically make sense for an investment account that holds unpredictable stocks and thus ...
• 133
5k views

### How does Robinhood’s cash sweep achieve 4% interest?

As of February 2023, Robinhood’s Brokerage Sweep Program guarantees its users 4.15% APY (for those who pay \$5 a month for Robinhood Gold). Robinhood is sweeping the cash to banks. Do those banks offer ...
• 253
1 vote
969 views

### Calculating Effective Annual Interest Rate & Annual Percentage Rate with fees (in R)

Problem How to calculate Effective Annual Interest Rate (EAR) and Annual Percentage Rate (APR) with fees (in R) ? I am interested in getting to know how much I am actually paying interest when fees ...
1 vote
329 views

### Calculate APY given start balance, end balance, and term

I'm having trouble figuring out the formula for calculating APY given a starting balance, ending balance, and term in length of years. What's the formula to do this?
1 vote
546 views

### Calculating APY and compounding rates of investment on Coinbase

So I have been working on determining which is better: the Coinbase apy seen in coins such as DAI (2%), and Algorand (4%) and a bank's apy, say 0.6%. I have the calculations in Matlab, but wanted to ...
167 views

### How can Genisys afford to pay 4.07% APY on checking accounts?

They do say “Must enroll in eStatements and use your Genisys Debit Mastercard® at least ten times per month for purchases of \$5.00 or more, excluding ATMs, to earn 4.07%APY.” And that ”Balances ...
93 views

### Calculating daily yields with a different compounding interest

For simplicity's sake, suppose I have an investment that earns 1% daily return on average. The following day, that 1% earning is immediately rolled over into an account that earns 10% yearly ...
• 245
1 vote
257 views

### What is the catch of getting 9.3% APY for USDC stacking?

I’m sure there is a catch . How is it possible that one can earn over 9% APY on USDC? There are many platforms offering this. Just on example https://blockfi.com/rates/ This looks too good to be true. ...
1 vote
177 views

### Proper way to annualize returns

Searching for "how to annualize interest rates" on Google leads to the following results: Wikihow's How to Annualize a Percentage Investopedia's Annualized Rate of Return Wikihow ...
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175 views

### Mistake in Investopedia's article on APY?

My question is about James Chen's article on Investopedia, Annual Percentage Yield (APY), last updated on October 17, 2020. It begins by correctly stating the formula for APY: APY = (1 + r / n)^n - 1 ...
• 1,297
339 views

### Does it make sense to ladder CD's if the APY is the same for different periods?

I understand that CD ladders are a mechanism to take advantage of the various interest rates offered for different time periods. Given that, is there any point investing in longer and longer term CD's ...
• 139
1 vote
76 views

### CDs vs saving account - which is better if both have same APY?

Currently Marcus by Goldman Sachs is offering the same APY for a 7-Month No-Penalty CD and for an Online savings account. AFAIU a savings account has full liquidity, while the CD forces you to stay ...
• 111
3k views

### What is the typical compounding/amortized period on US mortgage loans

In a different question it is stated that Mortgages are compounded .. 12 times a year in the USA Is this true or just applicable to that question? I am looking at a site where it explains how to ...
• 1,016
1 vote
205 views

### Why does a short-term certificate of deposit (CD) have a significantly smaller annual percentage yield (APY) than a saving accounts in some banks? [duplicate]

I see on Ally Financial's website that a 3-month certificate of deposit (CD) has an annual percentage yield (APY) of 0.75% whereas the saving account has an APY of 1.60%. This surprises me because I ...
• 11.3k
54 views

### Finding the price of an item years earlier from compound interest, simple interest, or APY

Is there a way to use the compound interest formula, simple interest, or APY to find the price of something years earlier if the price of it was increasing by a certain percentage annually?
1 vote
542 views

### Help me understand and calculate credit union interest in Google Sheets

I have opened a savings account at a credit union and deposited \$100. Every month my account tells me I've received \$0.02 in interest, and that my deposit dividend is 0.250% and my APY earned is 0.23%...
• 301
91 views

### Need help figuring out what yearly interest would be?

Even referencing several articles, I can't seem to figure this out; the dividend rate for a savings for instance with \$1,000 says it would be 0.10%, compounded quarterly, to me. That means: 1st ...
1 vote
949 views

### Does a savings account's advertised "APY" account for compound interest?

From what I've read, typically "APY" typically refers to the effective interest rate of an account (or loan) over the year, while accounting for compounding effects -- for instance, https://www.ally....
3k views

### "Simple interest rate of 0.10%" corresponds to "APY of 2.54%-5.00%"... how?

This checking account says Balances above \$5,000 earn a simple interest rate of 0.10%, with a corresponding APY of 2.54%-5.00% APY. I don't understand how a simple interest rate that is a fixed ...
• 3,369
1 vote
4k views

### How does the APY get applied on a CD that is less than one year?

I know that for interest rates you calculate the monthly rate by dividing by 12 (or similarly for any period by the number of periods/year). But if I have a 3 month CD that has a 0.4% APY, does that ...
2k views

### Interest Rate vs. Annual Percentage Yield (APY) [duplicate]

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 \$...
• 745
396 views

### Difference between APR and APY [duplicate]

Possible Duplicate: What is the difference between Interest Rate and APY? Can you explain to me the difference between APR and APY and which one I should care about more? I know that comparing ...
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