Annual percentage yield (APY) - The effective, or true, annual rate of return. The A.P.Y. is the rate actually earned or paid in one year, taking into account the affect of compounding. The A.P.Y. is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an A.P.Y. of 12.68% (1.01^12 -1).
Annual percentage yield (APY) : the effective, or true, annual rate of return. the a.p.y. is the rate actually earned or paid in one year, taking into account the affect of compounding. the a.p.y. is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. for example, a 1% per month rate has an a.p.y. of 12.68% (1.01^12 -1).
Annual percentage yield (APY)