1. Tuesday, March 9, 2010 - 12:35 PM
A great article on explaining interest rates.
I retired a few years ago but I remember in the 80's when interest rates were changing several times a day, a law or regulation was passed that required a bank employee to always quote the APY first for savings, checking and certificates of deposit.
We did not have to quote the rate or how it was compounded but if we did we still had to quote the APY FIRST . ALWAYS---
THE APY IS THE ONLY THING THAT REALLY MATTERS BECAUSE THAT IS FIGURE THAT WILL TELL YOU HOW MUCH YOU WILL GET AT THE END OF ONE YEAR AND IT MADE IT EASY TO COMPARE FIGURES WITH OTHER INSTITUTIONS. Wonder if that law or regulation still exists? A few of us retirees still remember it well. If we did not state the APY first the bank could be fined and we were told we would be fired.
I retired a few years ago but I remember in the 80's when interest rates were changing several times a day, a law or regulation was passed that required a bank employee to always quote the APY first for savings, checking and certificates of deposit.
We did not have to quote the rate or how it was compounded but if we did we still had to quote the APY FIRST . ALWAYS---
THE APY IS THE ONLY THING THAT REALLY MATTERS BECAUSE THAT IS FIGURE THAT WILL TELL YOU HOW MUCH YOU WILL GET AT THE END OF ONE YEAR AND IT MADE IT EASY TO COMPARE FIGURES WITH OTHER INSTITUTIONS. Wonder if that law or regulation still exists? A few of us retirees still remember it well. If we did not state the APY first the bank could be fined and we were told we would be fired.
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