Suze School: Understand How Interest Really Works
Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
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What Is the Difference Between the 3 Month Certificate and the 6 Month Certificate?
The 6 month certificate offers a dividend yield of 4.89% but the APY is 5%. Do you understand the difference between the dividend yield and the APY? And chances are you do not. Dividend yield is the actual interest rate that you will be earning on the certificates. Alliant Credit Union does not know if you are going to be withdrawing that interest or dividend yield or if you're just going to leave it in there.
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