Episode 173: APR vs APY Explained: How Compounding Affects Interest

Send us Fan MailWhen it comes to interest rates, not all percentages are created equal. In this episode, we break down the difference between APR (Annual Percentage Rate) and APY (Annual Percentage Yield)—two terms that may sound similar but can drastically affect how much you pay (or earn) over time. We’ll explore:Why lenders advertise APR while banks flaunt APYHow compounding frequency changes your bottom lineReal examples from high-yield savings accounts and credit cardsHow daily vs monthly compounding adds up over timeWhat’s actually included in APR (hint: it’s more than just the interest)Why understanding these terms is key to smarter borrowing and investing Whether you're saving, borrowing, or just trying to get the most from your money, knowing the true cost or benefit of interest can help you make better financial decisions.Tune in to learn how a few percentage points—and a little compounding—can make a big difference!Please subscribe and leave a review on your favorite Podcasting platform. Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakesIf you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbookDr. Elisa Chiang is  a physician and money coach who helps other doctors reach their financial goals by mastering their money mindset through personalized 1:1 coaching .You can learn more about Elisa at her website or follow her on social media.Website: https://ww.GrowYourWealthyMindset.comInstagram https://www.instagram.com/GrowYourWealthyMindsetFacebook https://www.facebook.com/ElisaChianghttps://www.facebook.com/GrowYourWealthyMindsetYouTube: https://www.youtube.com/c/WealthyMindsetMDLinked In: www.linkedin.com/in/ElisaChiang Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast...