BankingUS

What APY Means

Prepared by the BankingUS Editorial Team. Last reviewed October 25, 2026. How we review

Annual percentage yield (APY) shows the interest you would earn in a year including compounding. A higher compounding frequency raises APY slightly versus the stated rate. Use APY to compare deposit accounts, and APR to compare borrowing costs.

Verify with official sources

Start with the Federal Reserve and confirm details with your provider.

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