How can a CD’s APY be less than the interest rate!?

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Question:

My deposit account software is telling me the APY on our 15 month CD (interest paid at maturity) is LESS than the interest rate. What?!

Answer:

Yes, that is accurate! If the CD is not compounding interest at least annually, the Annual Percentage Yield will reflect that the account is not realizing the full interest rate in one year. Join the upcoming webinar “Yikes! The APR or APY is WRONG…Now What?!” on May 18, 2023 to learn more!

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Learn more about Rebekah Leonard’s, Yikes! The APR or APY is WRONG…Now What? webinar.