RodeoBob t1_jd40lxj wrote on March 21, 2023 at 5:57 PM

Reply to comment by mkhrrs89 in ELI5: How do high yield savings accounts work? What is APR & APY, and how does compounding quarterly vs monthly vs yearly affect the amount earned? If you open one, how often are there payouts? by mkhrrs89

It's extremely rare to have a saving account pay 12% interest. Certificates of Deposit, which are like a super-restrictive saving account, pay less than 6% right now.

I used 12% APR for the example just because it makes the math much simpler and easier to do.