Last week we took a look at compound interest and how that affects how quickly your money grows. But comparing potential banks, savings accounts, and CDs based on compound interest rates can be much easier by checking out the Annual Percentage Yield (APY).

In fourth grade, a banker came to my classroom to teach my class about compound interest. I was fascinated. First, I was shocked that a bank would pay me money to keep it safe, and second, I loved learning how I could make more money if my interest was compounded.  I memorized every single thing that would be on our compound interest test, and I did really well.  My mom even hung my A+ test on the refrigerator for a few days.