Q. If a three-month CD is yielding 5.3%, is that how much I'll be paid at the end of three months?
A.No. That's the annual percentage yield (APY). You can expect to be paid approximately one-fourth of that, or 1.33% for just three months. It can be a little misleading, but banks are required to state how much they're paying on deposits in annualized terms.
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