APR vs APY — What's the difference?
APR (Annual Percentage Rate) is the yearly interest rate charged on borrowed money — used for loans and credit cards. It typically doesn't account for compounding. APY (Annual Percentage Yield) includes the effect of compounding and is used for savings accounts and investments. A higher APY means your savings grow faster; a lower APR means borrowing is cheaper.
What is Compound Interest?
Compound interest means you earn interest on your interest, not just your principal. For example, €10,000 at 5% APY compounded annually becomes €10,500 after year 1, then €11,025 after year 2 — because you earned interest on the €500 too. Over time, compounding dramatically accelerates growth, which is why starting early matters so much.
What is Credit Utilization?
Credit utilization is the percentage of your available revolving credit that you're currently using. For example, if you have a €10,000 credit limit and owe €3,000, your utilization is 30%. Experts recommend keeping it below 30% — ideally below 10% — to maintain a healthy credit score. It accounts for about 30% of your FICO score.
What is Debt-to-Income (DTI) Ratio?
DTI ratio is your total monthly debt payments divided by your gross monthly income, expressed as a percentage. Lenders use it to assess how much more debt you can take on. A DTI under 36% is considered healthy; most mortgage lenders require under 43%. For example, €2,000 in monthly debts on a €6,000 income = 33% DTI.
What is Deposit Protection at an International Bank?
Unlike US domestic banks covered by FDIC insurance, international banks such as Cresta Trust & Geneva Mercantile Consortium are regulated by the Financial Services Commission (FSC) of Switzerland and are subject to FSC prudential oversight and capital adequacy requirements. Deposits are safeguarded through the bank's own capital reserves and ongoing FSC supervision. CTGMC maintains strong capital ratios and is subject to regular FSC examination. For full details, see our
Legal Disclosures.
How do I calculate my Net Worth?
Net worth = Total Assets − Total Liabilities. Assets include cash, investments, real estate, and vehicles. Liabilities include mortgages, loans, and credit card balances. If your assets total €350,000 and your liabilities total €180,000, your net worth is €170,000. Tracking your net worth regularly is one of the best ways to measure financial progress.