Difference between APR and nominal rates

P

paddyc

Guest
I know the APR is the better one to go by but can somebody actually explain the difference between the 2 ?

eg

BOI 2 yr fixed APR is 3.6% and nominal rate is 3.55%
EBS 2 yr fixed APR is 3.4% and nominal rate is 3.75%

Even though the APR is lower with BOI the monthly replayments are lower than the EBS
 
This crops up regularly and always eventually causes me to get confused again. :eek: Try these links:
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