Our bank is offering a 182 day CD at the rate of 5.08% with a APY of 5.20%. Minimum deposit is $1,000. How do you get to this assumption on the APY. If you calculate it for 182 days the APY is 5.14%. It looks to me like we are disclosing the wrong APY. Can someone help me understand this. Thanks.

Are you using the right compounding (i.e. monthly, quarterly, etc.). That could make a difference.

APY...ANNUAL percentage yield...if the deposit were to remain on deposit for a full year. APY is so customers can compare apples to apples, not apples to kiwi.

Thanks for your replies.