APY
Business & Finance abbreviation · Personal Finance
| Stands for | Annual percentage yield |
|---|---|
| Categories | Business & Finance |
APY stands for Annual percentage yield, a personal finance abbreviation.
Total return earned on a deposit over one year including the effect of compounding, used to compare savings accounts, money market accounts and certificates of deposit. A 4.00% interest rate compounded daily produces an APY of about 4.08%.
Example: The online bank pays 4.10% APY on balances over $1, with no monthly fee.
Usage notes
US banks must disclose APY under the Truth in Savings Act of 1991, implemented by Regulation DD. Because it includes compounding, APY is always equal to or higher than the stated rate. Banks quote APY on deposits and APR on loans, which in each case highlights the figure most favorable to the bank's message. The UK equivalent for savings is AER.
Related abbreviations
More personal finance abbreviations
- 457(b) – Deferred compensation plan (Internal Revenue Code section 457(b))
- 529 – Qualified tuition program (Internal Revenue Code section 529)
- ABLE – Achieving a Better Life Experience account
- AER – Annual equivalent rate
- APR – Annual percentage rate
- APRC – Annual percentage rate of charge
- AU – Authorized user
- BT – Balance transfer
- CIBIL – Credit Information Bureau (India) Limited
- CRA – Consumer reporting agency
- DB – Defined benefit plan
- DC – Defined contribution plan