ELI5 how compounding interest works on my HYSA I recently…
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ELI5 how compounding interest works on my HYSA
I recently opened a high yield savings account with discover. My APY is 3.30% and my interest rate is 3.25%. My first question is: can someone explain the difference between those two?
My second question is, I just got my first interest paid and it was 69 cents on 309.93 in the account. When I multiply, it looks like 3.25% of that is $10.07.
Since I didn’t get paid that interest amount, obviously it’s not calculated like that. Can someone explain how it is calculated?
TIA!
#education
source
I recently opened a high yield savings account with discover. My APY is 3.30% and my interest rate is 3.25%. My first question is: can someone explain the difference between those two?
My second question is, I just got my first interest paid and it was 69 cents on 309.93 in the account. When I multiply, it looks like 3.25% of that is $10.07.
Since I didn’t get paid that interest amount, obviously it’s not calculated like that. Can someone explain how it is calculated?
TIA!
#education
source
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