The banks' double standard

[pjohns]

Has anyone else noticed just how cynical the banks can be?

Just today, I received in the mail two offers, from different banks: One offered a loan at a certain Annual Percentage Rate (APR). This is in keeping with what I grew up with.

The other offered a savings account with a certain Annual Percentage Yield (APY).

To compare the two is like comparing apples with oranges, since one takes into account compounded interest, whereas the other does not.

Presumably, these folks are just hoping that no one will notice the difference...

[del]

most people will notice the difference between a savings account and a loan.

[pjohns]

most people will notice the difference between a savings account and a loan.

I think that is known as a red herring.

The real question is: Will most people notice that the bank is charging APR on a loan (which means compounded interest), and giving just APY on a savings account (which means just simple interest)?

[Common]

Has anyone else noticed just how cynical the banks can be?

Just today, I received in the mail two offers, from different banks: One offered a loan at a certain Annual Percentage Rate (APR). This is in keeping with what I grew up with.

The other offered a savings account with a certain Annual Percentage Yield (APY).

To compare the two is like comparing apples with oranges, since one takes into account compounded interest, whereas the other does not.

Presumably, these folks are just hoping that no one will notice the difference...

This is why other than investments I dont do business with banks I dont pay their ridiculous fees nor have to contend with their constant nonesense, I have checking accounts and rainy day savings accounts with 2 Credit Unions.

[del]

I think that is known as a red herring.

The real question is: Will most people notice that the bank is charging APR on a loan (which means compounded interest), and giving just APY on a savings account (which means just simple interest)?

The annual percentage yield (APY) is the effective annual rate of return taking into account the effect of compounding interest. APY is calculated by: The resultant percentage assumes that the funds will remain in the investment vehicle for a full 365 days.

http://www.investopedia.com/terms/a/...-layout-no-ads

this ain't rocket surgery

[waltky]

Granny says, "Dat's right...

... if dem banks gonna use yer money to make dem money...

... den dey oughta be offerin' discounts to use dey's money."