00:00Banking can be intimidating, in fact it used to be, but banks today are making it easier
00:05for customers to open accounts as incentives for you to join their ranks rather than their
00:10competitors. Many banks will offer you slightly different APY rates on their savings accounts,
00:16but that's not all there is to it. According to Investopedia, APY, annual percentage yield,
00:22is the real rate of return earned on an investment, taking into account the effect of compounding
00:28interest, which is calculated periodically and the amount is immediately added to your balance.
00:33With each period going forward, the account balance gets a little bigger, so the interest
00:37paid on the balance gets bigger as well. You don't have to stick to your one bank out of some
00:43sense
00:43of loyalty. Just because your parents banked there and you've had your bank account at this one place
00:48since your first job doesn't mean your bank is a good one. Money Talks News says banks know that
00:54most people are happy to accept the barest crumbs that fall from their table. Make sure you're not
00:59being taken advantage of. Your bank is paying you next to nothing on your savings, a quarter of a
01:05cent of interest for every dollar on average, while making 10 to 20 times more. Paying more attention to
01:12where you bank and what your interest rates are means making you richer, not your bank.
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