7/19    Whats the difference between APY and interest rate?
        \_ APY is annual percentage yield.  It's the total amount of money you
           gain if you get paid interest, and then get paid interest on the
           interest, and so on and so forth, for 1 year.
           \_ yes.  remember, the daily interest rate will compound to
              equate to the APY (Annual Percentage Yield).  The APY
              involves a compounding interest rate.
              \_ Hmm, the difference seems pretty small.  Say the rate is 10%.
                 When compounded daily, the APY is just (1 + 10% / 365) ^ 365
                 - 1 = 10.52%, which is not much bigger than 10%.
                 \_ Which is still a difference....
                    \_ Heh heh, in fact the APY for compounding 10% interest
                       in infinitely small intervals is e ^ 10% - 1 = 10.5171%.
                       For daily, it's 10.5156%.  -- math-major-wannabe CS alum
                \_ half a percent is a huge difference.  I'd kill to drop my
                   mortgage half a percent or raise my savings rate (or any
                   other income rate) by the same.