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Finance
Annual Percentage Yield
The real yearly return you earn on savings or investments when interest is compounded.
APY shows the magic of compounding. The more often interest is added, the higher the APY compared to the simple rate. It's the number smart savers compare.It's like the final score on a video game that includes all the bonus points you pick up along the way.
Real world: A savings account that says 5% interest might actually give you 5.12% APY because the bank adds interest every month.
💡 When shopping for high-yield savings or CDs, always check APY — it's the number that actually shows how fast your money will grow.