Everyday accounts, savings accounts, interest rates and deposit protection.
US banks quote deposit returns as APY, which includes the effect of compounding — the Truth in Savings Act requires it, which is what makes two accounts comparable on one number. Deposits at an insured bank are protected by the FDIC up to $250,000 per depositor, per bank, per ownership category; investments sold by that same bank are not protected at all.
Written for the United States. Terminology, protection limits and regulators differ between markets, so a guide from another country will not transfer cleanly.
FDIC insurance protects deposits at insured banks if the bank fails. Here is the standard limit, how ownership categories multiply it, and what is not covered at all.
What makes an account high-yield, what the advertised APY may be hiding, and when a savings account beats a CD.
APY is the annual return on a deposit including compounding. US banks are required to quote it, which is what makes savings accounts comparable on one number.
Calculators
Run the numbers on your own situation.
What is the APY on this rate?