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What is APY, and why does it matter? Learn about the annual percentage yield, how it works, and what it means for your finances.

Among 370 savings accounts from 157 banks and credit unions, we found the Synchrony High-Yield Savings account to be the best high-yield savings account. An impressive annual percentage yield (APY ...

What is annual percentage yield (APY)? Annual percentage yield, or APY, is a measure that extends beyond simple interest rates and involves the dynamics of compound interest.

Annual percentage yield, explained APY refers to how much you can earn in a given year on money deposited in an interest-bearing account, such as a savings accoun t or certificate of deposit (CD).

The annual percentage yield represents the actual rate of return and accounts for the effects of compounding interest.