Investing - Theory, News & General • Re: CDs, APYs posted, not the dividend rate

APY is the amount you would earn over an entire year, including the effect of monthly compounding.

For planning purposes, you can pretty much use APY and simple interest rate interchangeably. A 4% simple rate compounded monthly is a 4.07% APY. The difference can get significant when rates start getting into double digits, but at current rate levels, it won't matter too much.

Statistics: Posted by venkman — Tue Sep 22, 2026 1:01 am