When you are looking for a place to stash your cash, you’ll likely come across accounts that advertise their annual percentage yield (APY). This number tells you how much interest the account is paying out on a yearly basis. It’s important to compare APYs when you’re shopping around for a new account, as a higher yield can mean more money in your pocket.

But how do you calculate APY on a CD, anyway? It’s not as difficult as you might think. Just follow these steps:

1. Start by finding the interest rate for the CD. This is the percentage of …