What Is The Difference Between Yield And Rate On My Savings Bonds?

i have some to cash in and found the same interest rate but different yields. i would rather keep a few that earn the most money. i have 237 bonds to weed through.

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One Response to What Is The Difference Between Yield And Rate On My Savings Bonds?

  1. LongArm says:
    December 6, 2009 at 7:13 am

    The rate is the annual percentage rate paid, and yield is what you actually MAKE in a year when compounding is taken into account. So a bond with an annual rate of, say, 4%, will have a yield slightly higher than that because of the compounding that occurs during the year.