From our Defining APR Down desk:
Citibank (official slogan: Thanks, suckers!) is currently running a newspaper ad with the headline, “DREAM 1.01% BIGGER.”
The ad promotes the Citibank® Savings Plus Account, which offers a whopping 1.01% APY (Annual Percentage Yield – the new APR) if you dump $25,000 into it.
(Full disclosure: The hardworking staff’s checking account – not at Citibank, but might as well be – earned exactly $.02 last month. Go figure.)
So forget what Albert Einstein supposedly (according to snopes.com) said about compound interest being “the most powerful force in the universe.”
You don’t have to be a Mensa member to know how powerless compound interest is these days.