Annual Percentage Yield Definition
Annual Percentage Yield (APY) represents the interest rate paid on deposits by a financial institution.
It is expressed as a percentage, and means the interest that an investor would
receive on a $100 deposit. The rate is based on the annual interest rate and
the frequency of compounding for a 365-day period. With the help of APY,
offerings of various banks can be compared. Banks often use it when promoting