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Re: 6% APY CD
Old 09-28-2006, 06:07 AM   #21
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Re: 6% APY CD

Just looked at Bank of America site. They have a 4 and a 5 year CD where the APR and APY are the same. To me that is annual compounding. Go to another institution and the APR is the SAME as BOA but the APY is higher. Which indicates the institution compounds at a rate better than BOA but, here again, it may be MONTHLY, SEMI-ANNUAL, or QUARTERLY compounding. Just a minor thought, unless you use CD's over the long (10 plus years) term. At this timing small numbers will add up. Just a minor thought and since the numbers on a single particular CD are small and some would say "not worth being considerate of".
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Re: 6% APY CD
Old 09-28-2006, 06:38 AM   #22
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Re: 6% APY CD

Quote:
Originally Posted by ash
Banks are compelled to state the APY as a means to easily compare the real return against competing banks.
And yet there are those who don't want the government to get "involved" in business
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Re: 6% APY CD
Old 09-28-2006, 06:49 AM   #23
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Re: 6% APY CD

Good example of how Compounding is done can be found at BankRate.com. When you pull up best rates by CD for either Banks or Credit Unions the listing has a column "CM" compounding method. The also show the APR/APY but the "CM" can effect the APY between institutions.

Ok "Old" you made your point, no sense in beating it to death, now let the subject die...............
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Re: 6% APY CD
Old 09-28-2006, 06:59 AM   #24
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Re: 6% APY CD

Quote:
Originally Posted by astromeria
And yet there are those who don't want the government to get "involved" in business
Because with a government education, we can't expect people to be able to calculate an APY themselves, right? Or even be sure of what one is?
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