Finance & Banking

APY

ˌeɪ piː ˈwaɪ

noun

What does APY mean?

Annual Percentage Yield — yearly interest earned.

Example sentence

"The account offers 4% APY."

American usage tip

APY includes compounding; APR is for loans.

Related Finance & Banking words

Cashback
A percentage of spending returned to you.
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A free instant bank-to-bank payment app.
Overdraft
Spending more than your account holds.
Budget
A plan for income and spending.
401(k)
An employer retirement account with tax benefits.
Savings account
An account that earns interest on stored money.
APR
Annual Percentage Rate — yearly loan/credit cost.
Credit score
A number (300-850) showing how reliable a borrower you are.

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