Tag Archives: annual percentage rate

APR vs APY: Understanding the Difference

APR vs APY: Understanding the Difference

When searching for a loan or savings product, you are quoted with the annual percentage rate (APR) and the annual percentage yield (APY). Many consumers are unaware of which one they should be paying the most attention to. Some even mistake the two for the same thing when making comparisons between two different products and unfortunately, arriving at an incorrect conclusion. In this post I will show you what each calculation means, how to perform the calculation, and when to use it. Continue Reading