The published interest rate for the product you are interested in (enter the actual interest rate, not the APY).
https://www.bankofinternet.com/calculators/apy-interest-calculator
Here is a look at the formulas for each method: For example, a credit card company might charge 1% interest each month; therefore, the APR would equal 12% (1% x 12 months = 12%). This differs from APY, which takes into account compound interest. The APY for a 1% rate of interest compounded monthly would be 12.68% [(1 + 0.01)^12 – 1= 12.68%] a year. If you only carry a balance on your credit card for one month's period you will be charged the equivalent yearly rate of 12%.
http://www.investopedia.com/articles/basics/04/102904.asp
BREAKING DOWN 'Annual Percentage Yield-APY'. The APY is similar in nature to the annual percentage rate. Its usefulness lies in its ability to standardize varying interest-rate agreements into an annualized percentage number.
http://www.investopedia.com/terms/a/apy.asp
Annual percentage rate and annual percentage yield are two ways companies calculate the amount of interest you can owe. Learn more about them and find out which is the better rate.
http://www.investopedia.com/terms/a/apy.asp
Being financially literate in this area will help you spot which interest rate you are really getting. Defining APR and APY. APR is the annual rate of interest without taking into account the compounding of interest within that year. Alternatively, APY does take into account the effects of intra-year compounding. This seemingly subtle difference can have important implications for investors and borrowers.
http://www.investopedia.com/articles/basics/04/102904.asp
Simple Interest Simple interest is just that and is typically used with savings bonds. It means if you invest $1,000 at 5% interest, at the end of the year you will receive a $50 check. At the end of next year you will receive another $50 check. This will happen every year for the length savings bond term.
https://www.depositaccounts.com/blog/understanding-interest-rate-and-apy.html
APY is similar to APR or Annual Percentage Rate. The difference is APY is used with deposit accounts where you are earning the interest and APR is used to describe the rate you pay on loans. APR also factors in loan fees that must be paid, which is not applicable in APY calculations for deposit accounts.
https://www.depositaccounts.com/blog/understanding-interest-rate-and-apy.html
The calculator will calculate the ending balance, including interest earned, once you have entered the Initial Deposit, Interest Rate and selected Compounded Daily.
https://www.bankofinternet.com/calculators/apy-interest-calculator
Simple Interest. Simple interest is just that and is typically used with savings bonds. It means if you invest $1,000 at 5% interest, at the end of the year you will receive a $50 check. At the end of next year you will receive another $50 check.
https://www.depositaccounts.com/blog/understanding-interest-rate-and-apy.html
The effective annual rate of return taking into account the effect of compounding interest. APY is calculated by: The resultant percentage number assumes that funds will remain in the investment vehicle for a full 365 days.
http://www.investopedia.com/terms/a/apy.asp
what is an apy
The annual percentage yield is a deposit account where you are earning the interest.