after one year, you will get $4.50 if the interest is not compounded. A bit more if it is compounded daily.

If I have a savings account that says this information:

0.90% interest rate

0.90 APY

Compounded daily, paid monthly

What exactly does this all mean?

Very confused.

I am putting 500 dollars in this account soon, and want to know what this all means.

Thank you