Wiliam Mwangi

When dealing with financial institutions in the scope of savings and borrowing, two acronyms that are often bandied around are APY and APR. Many people outside the financial industry find it hard to differentiate these two concepts. A simple rule of thumb is to know that APY applies to payments that a customer earns from their investments or savings. APR applies to payments they make to the bank for credit facilities like loans and credit cards.

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