Learn what the stated annual interest rate is and how to calculate it without compounding, plus how it compares to the effective annual rate.

Steven Nickolas is a freelance writer and has 10+ years of experience working as a consultant to retail and institutional investors. Amy is an ACA and the CEO and founder of OnPoint Learning, a ...

is—it’s effectively a percentage of an amount over a year. If your savings account earns you a 0.05% interest per year (which is a really terrible interest rate, honestly), you earn $5 in interest for ...

When you compare savings, money market or other interest-bearing accounts, you will see either interest rates or the annual percentage yield (APY) and sometimes both. What’s the difference between the ...