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| Interest paid only on the original principal, not on the interest accrued |
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| Interest computed on the accumulated unpaid interest as well as on the original principal |
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| is a method of estimating how long it will take compounding interest to double an investment. |
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Not subject to taxation, as the capital or income of a philanthropic organization.
Producing interest that is exempt from income tax |
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Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached.
Of or relating to the income that such an investment generates prior to becoming subject to taxation |
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| the annual equivalent of a rate of interest when the rate is quoted more frequently than annually, usually monthly |
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| is a tool for evaluating how much a deposit earns you. Why would you look at an account’s APY? Because it is a standardized way of comparing investments. Your job as a consumer is to put your money where it will get the highest APY. |
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| is similar to a savings account in that you are paid interest on money deposited in a financial institution. However, you earn higher interest in exchange for agreeing to leave the money on deposit for a set period of time. CDs are a safe investment as long as you understand how they work and especially the penalties for early withdrawal of the funds. |
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| US Savings bonds are one investment option. Saving bonds are purchased from the government. The bonds earn a rate of return based on market conditions. The rate of return is usually very low. This makes savings bonds a poor investment. It may take up to twenty years for a bond to reach maturity. However many people use savings bonds as gifts or prizes. If you have received savings bonds as a gift you may as well hold on to the investment |
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