Articles from our resource area experts.

Have a question? Try asking one of our Experts

Annual Percentage Yield (APY)

Last Updated: November 14, 2006 | Related resource areas: Personal Finance

The yearly interest rate received from an investment. Also known as the effective yield. It takes into account how often the interest in paid (compounded). If two interest rates are the same, the one with the most compounding periods will have the highest APY (7% with daily compounding has a higher APY then 7% with quarterly compounding). It is important to always compare APY when comparing different interest rates before making an investment.


Have a specific question? Try asking one of our Experts

Unlike most other resources on the web, we have experts from Universities around the country ready to answer your questions.

Comments

Post a comment about this topic

Please keep comments on topic. To ask a question, please use Ask an Expert. All comments are held for moderation. Comments that include profanity, personal attacks or other inappropriate material will not be posted to the site.

Did you find this page useful?

No one has rated this article yet. Why not be the first? what is this?
not useful
very useful
 1  2  3  4  5