Quote:
Originally Posted by goodtosave
APR are what lenders quote or disclose for loans.
APYs are used for your savings accounts.
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I believe APR is the percentage interest on your principle each time they pay you. APY is the percentage interest you would get if you leave both the principle AND the interest in the account to compound during that year.
Something like that. But yes, APY is most certainly listed in savings since higher is better, whereas APR is most often advertised for loans since lower is better.
When I become overlord of the world, I'm going to abolish APY and make the APR the only universal standard.
