like you're 5
apr = the rent you pay to use someone else’s money. apy = the rent someone pays YOU for parking your money at their bank. you want a low apr and a high apy.
use it in a sentence
“my credit card charges 24% apr, but my savings account pays 4% apy — so paying the card first is a no-brainer.”
good to know
illustrative — but yes, debt interest almost always beats savings interest.