Talk:Annual percentage yield

AER v. APY
How does AER relate to APY? Are they different or the same? If the same, why do the different terms exist? —The preceding unsigned comment was added by 209.33.225.222 (talk • contribs).


 * I believe that AER is a strictly UK construction and factors in interest distribution. APY implicitly assumes that interest will not be distributed and will compound for the life of the product. For this reason, I don't believe that a formulaic approach to AER exists. Consider that a CD that pays out all interest monthly will have varying compounding periods (i.e. January gets 31 days of compounding, February 28 days, etc.). This requires a very tedious calculation to determine actual AER. --Laxrulz777 21:40, 28 August 2006 (UTC)

Combine pages ?
I appreciate that each of the contributors has tried to be helpful to the public, but... There are now six separate pages on interest compounding. What do do guys think about a major 'meld' of pages, probably within an amended Interest rate, or else stand alone??? See for yourself the pages: Annual equivalent rate Compound interest Effective annual rate Annual percentage rate Annual percentage yield Interest

Retail Investor 19:40, 9 September 2006 (UTC)

Disputed formula
A quick Google search seems to suggest that the definition given in the article is, at the very least, unusual. The definition in common use appears to be the same as that for APR (as used in the EU), which has a different formula.

RandomP 13:13, 12 October 2006 (UTC)

Assessment comment
Substituted at 18:08, 17 July 2016 (UTC)

Example error?
The second paragraph of the lead section explains that banks will often publicise the APY rather than the APR because it looks better to potential clients. However, in the example given – "For example, a CD that has a 4.65% APR, compounded monthly, would instead be quoted as a 4.65% APY." – the quoted APR and APY are identical. Isn't this the very opposite of the point being made? Ian Page (talk) 19:36, 26 January 2021 (UTC)