Stupid question about APR vs APY and compounding frequency

[RunningwithScissors]

I'm shopping around for a new bank for a sizable savings account and I'm second guessing myself.

I know the difference between APR (Annual Percentage Rate) and APY (Annual Percentage Yield).

I've narrowed down my search to two banks with high APYs and other terms/factors/ease of use I like. One bank has a .05% higher APY but compounds less frequently.

Here's the part I want to double check -- the frequency doesn't matter when comparing two APY's right? My understanding is that it is only is a factor when comparing APRs. Or am I not understanding?

Thanks!

 

[Karl_K]

APY formula


Where:

r = period rate
n = number of compounding periods

So when comparing apy to apy the compounding periods are accounted for in the numbers.

edit: not an accountant and dont play 1 on the internet.

 

[RunningwithScissors]

APY formula


Where:

r = period rate
n = number of compounding periods

So when comparing apy to apy the compounding periods are accounted for in the numbers.

edit: not an accountant and dont play 1 on the internet.

Thanks Karl! That's what I thought, but wanted to make sure I wasn't missing something.