Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [apy]

25 questions
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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 accounts with interest rates this high? The best…
asb1230
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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 5.5 (I think that's called APY?) I thought I…
zadane
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What is the difference between Interest Rate and APY?

What is the difference between Interest Rate and APY on savings accounts, CDs, etc? Is there a simple formula to convert the two?
C. Ross
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"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 number can result in a range of APYs, especially one…
user541686
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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 convert APR to APY on basis of the type of…
puzzled
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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 the "APY" would be unstable. But I would still…
kcghost
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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 unless the APY is (at least slightly) higher…
286642
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Difference between APR and APY

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 APR and APY to each other is like comparing apples…
mpenrow
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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?
Nathan Arthur
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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 over $7,500 will earn .05%APY.” This still seems…
Cotton Headed Ninnymuggins
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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 compounding daily. So suppose I had $1000 as an initial…
eComEvo
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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 Where "r" is the per-period interest rate…
Paul Razvan Berg
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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% or 0.22% (it's not the same every month). …
grgoelyk
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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.com/cds/apy-vs-apr-what-is-apr-what-is-apy/ APY,…
Thomas Norris
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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 mean that I'll see 0.1% (or 0.4*0.25) for the 3…
Fueled By Coffee
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