APY (Annual Percentage Yield)
BankingThe total amount of interest earned on a deposit account in one year, including compound interest — the true savings return.
Example
Example: When choosing between bank accounts or evaluating financial products, understanding apy (annual percentage yield) helps you make better decisions. On a $25,000 savings balance, the difference between a 0.5% and 4.5% APY savings account is $1,000/year — real money that adds up. Compare options with our savings calculator.