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Put more simply, APY is the annual rate of return.
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Put more simply, APY is the annual rate of return.
Smart CD investors have a specific tactic for hedging against rate changes over time and maximizing their return. Financial institutions use the funds from sold CDs to re-lend and profit from the difference , hold in their reserves, spend for their operations, or take care of other miscellaneous expenses. Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. Ribbon Icon Expertise.
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