APY, fees, tiers, and fine print
Financial pages often hide complexity behind small terms. Here are the ones worth slowing down for.
APY
Annual Percentage Yield is a standardized way to express yearly yield with compounding assumptions. It still depends on the product rules.
Fees
A monthly fee can reduce the practical value of a high rate. Always compare the rate with the cost of keeping the account open.
Tiers
A rate tier means different balances may earn different rates. The headline number may apply only to a slice of money or a specific range.
Educational example only. This article is not an offer, recommendation, or promise of earnings.