Annual percentage yield (APY) is the effective annual rate of return on an investment. Learn how it accounts for compounding interest and how it differs from APR.

Rebecca Lake is a certified educator in personal finance (CEPF) and a banking expert. She's been writing about personal finance since 2014, and her work has appeared in numerous publications online.

Annual percentage yield is a way to measure the amount of money earned on an interest-bearing account, annualized over a year. The higher the APY on a savings account, the more money you earn on the ...

When you invest in a product, you expect a return above and beyond what you paid for that product. This is APY. What is APY? It stands for annual percentage yield, and it represents the rate of return ...

APY, or Annual Percentage Yield, is an important term to understand if you want to maximize your money’s growth potential. It measures the interest earned on a financial product or account over one ...

Toni Husbands was a staff writer with CNET Money. She began writing about personal finance to document her experience paying off $107,000 of debt, which is detailed in her book "The Great Debt Dump." ...

What is APR in general? According to the Consumer Financial Protection Bureau (CFPB), the APR or annual percentage rate is the amount paid to borrow money. It’s also known as a credit card interest ...

If you've been looking at interest-bearing accounts like high-yield savings accounts or certificates of deposit (CDs), you may see the terms "interest rate" and "annual percentage yield" (APY) being ...

Pennsylvania-based Horizon Federal Credit Union offers a checking account that earns an 8% annual percentage yield (APY) — a number boosting it past most high-yield savings accounts, let alone other ...