Annual Percentage Yield Definition

In finance, the rate of return ( in percentage %) earned from the investments or saving deposits accounts are known as annual percentage yield (APY).

In other words, Annual Percentage Yield is a formula used to analyze the earned interest rates having various periods of compounding. This percentage rate obtains by APR also reflects the yearly cost of credit.

Annual Percentage Yield


If you want to know about annual percentage rate, you can use our Annual Percentage Rate Definition.

For more prices understanding of a concept, check out the example listed below:

If a $1,000 investment is made at a return rate of 10% per year, it earns $100 in a year, which means it has an APY of 10%.