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Deposit Rates
Money Market
/ APY
Checking
/ APY
Z-Share
/ APY
Quoted Rates, dividends, annual percentage yields (APY) and rates (APR) are subject to change daily at the discretion of the Board of Directors.

What do these numbers mean?

When you put your money into the credit union, your money earns interest. But, do you really know how much money you may have in the future based on your current investments?

Your wealth is based on what you save, not what you spend. Below we will explain to you how you can build your wealth by understanding how interest rates work and how they can work for you.

What is the Difference between APR (Annual Percentage Rate) and APY (Annual Percentage Yield)?

The main difference between APR and APY is compounding.

APR is the annual rate of interest without taking into account the compounding of interest within that year. On the other hand, APY does take into account the effects of compounding of interest within that year.

APR reflects the annual interest rate that is paid on an investment, but does not take into effect how often that interest is applied. APY takes into account how often the interest is applied to the balance, which can range anywhere from daily to annually.

When considering interest rates, make sure to compare APY to APY and look for how often interest is paid.

What is the Difference between Simple and Compound Interest?

Compound is when interest is paid on interest. The interest earned in each period is added to the principal to become the principal for the next period. This means that you will earn interest on your interest. That is putting your money to work for you!

Simple interest is the most basic type of interest. It is figured only on the amount of the principal. Interest is computed from the original principal alone, no matter how much money has accrued so far.

At SECU, the interest on Share, Money Market, Checking accounts and tax-advantaged accounts are compounded daily and paid monthly.

The examples below will show you how important it is to take into consideration how often interest is compounded within the year, as well as, the different earnings from compound and simple interest.

The example below is of a one-time deposit of $5,000 with an interest rate of 4%. The compound interest below is compounded yearly.

Years Compounded
Interest Yearly
Simple Interest
5 years $6,083.26 $6,000
10 years $7,401.22 $7,000
15 years $9,004.72 $8,000
20 years $10,955.62 $9,000
25 years $13,329.18 $10,000


The example below is of a one-time deposit of $5,000 with an interest rate of 4%. The compounded interest below is compounded daily like our Share, Money Market, Checking, and tax-advantaged accounts.

Years Compounded
Interest Daily
Simple Interest
5 years $6,106.95 $6,000
10 years $7,458.96 $7,000
15 years $9,110.29 $8,000
20 years $11,127.22 $9,000
25 years $13,590.66 $10,000


Now that you understand the differences in APR and APY, you can feel comfortable making sound judgments about your investments!