What Is APY (Annual Percentage Yield)?
From the SB Advisors Academy money glossary · Free, no signup
The real rate of return on a savings account over one year, including the effect of compound interest at the account’s compounding frequency.
A worked example
An account with 5% APY on $1,000 grows to $1,050 at the end of the year if compounded annually.
Category
Part of the "Banking and Savings" group in the money glossary.