What is APY? This metric allows holders of deposit accounts to accurately understand the amount of interest income that will be generated by their account.

APY stands for Annual Percentage Yield — which is an estimate of how much interest your savings will earn in a year. Unlike a simple interest rate, APY factors in compound interest, which is when you ...

You may notice if you’re shopping for a savings account that banks advertise both an interest rate and an annual percentage rate, or APY. While an account’s interest rate can give you a basic idea of ...