What 5% APY Really Means: The Truth Behind Bank Rates

Think you’re earning 5% on your savings? Not so fast. In the first rendition of the renewed podcast series, Jeremiah and Nic uncover the truth behind annual percentage yield (APY)—what it is, how it’s calculated, and why it often misleads savers.

From CD rates to high-yield savings accounts and dividend stocks, they break down the difference between annual percentage rate (APR) and APY, explain how monthly compounding works, and highlight the pitfalls of relying on introductory bank offers. But this episode goes deeper than just math. The duo challenges listeners to ask the right questions: Is this rate in my best interest—or someone else’s? Is short-term security worth sacrificing long-term growth?

Listen, Watch, Subscribe, Ask!

https://www.therealmoneypros.com

Hosts:

Jeremiah Bates & Nic Daniels