1, different definitions: the annual interest rate refers to the percentage of interest amount to the principal of deposit and loan within one year, which is a fixed value. After the annual interest rate is determined, it will not change unless there is a big problem. The annualized interest rate is converted into one-year interest rate with reference to the current interest rate, which is a floating value. For example, the 7-day annualized interest rate is to convert the inherent interest rate of the last 7 days into a one-year interest rate, which is not a fixed value and can be used as a reference.

2. The calculation method of interest is different: the annual interest rate is usually calculated on an annual basis. For example, if a customer applies for a loan at an annual interest rate, it is usually convenient to calculate the loan interest for one year by multiplying the loan principal by the annual interest rate. However, the loan term with annualized interest rate is not one year, but one month and one week, so when calculating annualized interest, basically only the interest of the actual loan days of the customer is calculated.

3. Different application scenarios: there is usually an annual interest rate on loans, and some wealth management products will also express loan interest according to the annual interest rate. The annualized interest rate is usually the concept of amplifying the short-term product's rate of return to show its long-term rate of return, paying more attention to the comparison of customers, which is common in some products with floating interest rates, such as funds and bonds.