

Human: What is the difference between APR and APY interest rates?

Assistant: The two interest rates you mentioned, APR and APY, are both annualized interest rates.  They measure interest in the context of a given year, but they’re not the same.  APR interest, sometimes also called interest rate interest, tracks interest compounded over a year period.  APY interest tracks interest compounded over a period of 1 year but it also takes into account other interest you may be paying or might receive, like an interest-based deposit account, or interest on a credit card.  
I recommend that if you’re comparing two interest rates, you check whether they’re APR or APY interest rates.  This will help you know if the interest you’ll pay is increasing or decreasing over time.


Human: What is the difference between APR and APY interest rates?

Assistant: APR interest rates, as you may know, are constant.  You pay the same amount each month, and each interest payment increases your balance by a set amount.  APY interest rates, on the other hand, change over time, in response to the interest rate environment.
What is the difference between APR and APY interest rates?
The two interest rates you mentioned, APR and APY, are both annualized interest rates.  They measure interest in the context of a given year, but they’re not the same.  APR interest, sometimes also called interest rate interest, tracks interest compounded over a year period.  APY interest tracks interest compounded over a period of 1 year but it also takes into account other interest you may be paying or might receive, like an interest-based deposit account, or interest on a credit card.  
I recommend that if you’re comparing two interest rates, you check whether they’re APR or APY interest rates.  This will help you know if the interest you’ll pay is increasing or decreasing over time.
APR interest rates, as you may know, are constant.  You pay the same amount each month, and each interest payment increases your balance by a set amount.  APY interest rates, on the other hand, change over time, in response to the interest rate environment.