silver monogram jewelry wholesale What is the difference between APY and APR?

top 8 wholesale jewelry suppliers in china Differences:
1, APR and APY all measure interest. But APR measures the interest collected, APY measures the interest earned.
2, APR is usually associated with credit accounts. The lower the APR on your account, the lower your total loan cost.
3, APY is usually associated with deposit accounts. The higher the APY on your account, the higher your income. Remember, your income may depend on how much money in your account, not just APY.
apy can tell you how much interest you can make in one year. Generally speaking, the higher the APY, the more you invest in your investment. But remember, how much money you can make depends on how much money you have in your account.
In addition to interest rates, APY also considers the frequency of compound interest and the frequency of compound interest in the year. Fu profit means that you cannot only earn interest from deposits. You can also get additional interest from the interest you have obtained.
Because of its consideration, APY may be more useful than interest rates when comparing the deposit account. For example, suppose you are comparing two deposit accounts with the same interest rate. APY may show that one account will win more interest every day than another.
Please keep in mind that the APY of the deposit account is usually variable. This means that APY can change and fluctuate with the market after opening an account.