Is there a defining difference between annualized and compound interest on banking accounts, and, what is it ?

trying to find a good bank for business and savings accounts for myself as well as my employees I own a small business { child development center.}

Compound Interest rate is the rate of interest paid over a certain period of time. The period of time could be one year, semi-annual, quarterly, monthly, weekly or even daily.

For example, say you have $ 100 in the bank that pays 2% quarterly. In 3 months you will have $ 102. In 3 months after that you'll have $104.04. In 3 months after that you'll have 106.12. And finally 3 months after that you'll have $ 108.24.

That brings us to the annualized interest rate. In the example above the annualized rate of 2% quarterly compounded rate is 8.24%. That is just a simplification of the compound rate for comparative purposes because compounding can vary by period. With the annualized rate you can compare a bank that pays quarterly to one that pays weekly.

HSBC has a great online money market. Yielding about 4.8% I think. Compounding interest means that every month that interst earned is added to your account there for compounding and growing every month.

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