Definitions+Page

** Definitions: **

 ** What is APY? ** 

CD - Annual percentage yield (APY) is a tool for evaluating how much a deposit earns you. Why would you look at an account’s APY? Because it is a standardized way of comparing investments. Your job as a consumer is to put your money where it will get the highest APY.  As the name suggests, APY is the yield you earn on a deposit over a year. It refers to your earnings – how much money you’re making. Because we all want our money to work for us and grow, it is important to get a good APY from the bank.

What is Unique About APY? APY is notable because it takes compounding into account. In very simple terms, compounding means making earnings on your earnings. This means that the quoted APY is telling you how much you’re really making on your money. Other ways of quoting a rate don’t necessarily show you the whole picture.

APY = (1 + r/n )n – 1 where r is the stated annual interest rate and n is the number of times you’ll compound per year. 

**What is Initial Deposit? This is the initial amount of money the bank requires you to deposit for the CD. Another words, this is the amount you have deposited.

What is Term? This is the length of time the CD will mature. If it is one year, then the CD expires at the end of one year. This is how long the money must remain in the account. **   **What is a Certificate of Deposit?**

 Certificates of Deposit pay slightly higher [|interest rates]  than <span style="font-family: 'Comic Sans MS',cursive; font-size: 13px; font-weight: normal;">[|savings accounts]  <span style="font-family: 'Comic Sans MS',cursive; font-size: 13px; font-weight: normal;">. There are many kinds of CDs. They pay different rates, and they require different lengths of time you must keep your money in them. So if you decide to look into CDs, you have lots of choices.
 * <span style="font-family: 'Comic Sans MS',cursive; font-size: 13px; font-weight: normal;">You can buy Certificates of Deposit (CDs) at banks. They're called CDs because when you deposit your money, the bank gives you a certificate telling you – **
 * <span style="font-family: 'Comic Sans MS',cursive; font-size: 13px; font-weight: normal;">the amount you have deposited
 * <span style="font-family: 'Comic Sans MS',cursive; font-size: 13px; font-weight: normal;">the interest rate being paid
 * <span style="font-family: 'Comic Sans MS',cursive; font-size: 13px; font-weight: normal;">how long the money must remain in the account

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