Calculations for the annual percentage yield (APY) are based on two variables: interest and compound frequency. You can contrast a number of offers that have various compounding durations thanks to the diversity of possibilities in the second box.
If you take all of your yields and consistently add them on top of your primary into the pool, compounding your equity to earn yields on your yields, you will earn an annual percentage yield (APY) at the end of the year. This is a potent process that, over time, grows exponentially.
APR, on the other hand, is a form of simple interest that estimates your annual direct earnings if you simply received returns on your initial investment.
Not all accounts are created equal in terms of interest rates.
Naturally, interest rates are only one aspect to take into account when selecting a bank account. But if you want to optimize your profits, it's crucial to know how various account types compare when it comes to interest rate comparison shopping.
What Are Corporate FDs? How Different Are They From Bank FDs? Fixed Deposits have always been a favorable investment option among investors who look forward to consistent returns over a period. Many folks relate fixed deposits closely with banks...