Sunday, February 21, 2016

Annualised yield is a cheap and obscene trick that banks and other financial companies use to make returns look more than actual

A newsletter of Kotak Mahindra Bank:


These days even reputed and respected companies highlight the annual/annualised/annualized yield [or cumulative yield] instead of the actual interest rate at which the principal amount is compounded, in order to fool the general public into believing that the interest rate he's getting on his fixed deposit or bonds is higher than it really is.