Money guide · APY
What does APY actually mean?
APY is the annual percentage yield on a deposit account. In plain English, it is a way to show what your money could earn over a year after compounding is taken into account.
It includes compounding
That makes APY more useful than looking at a basic interest rate by itself. It gives you a better apples-to-apples number when you compare savings accounts.
It can change
Savings rates are usually variable. The APY you see today may be different next month, so do not read a current APY as a promise for the whole year.
It is not the only thing that matters
A slightly higher APY may not help much if the account charges fees, has awkward minimums, or makes it harder to reach your money when you need it.
Want to see it in dollars? Put your own balance into the Savings Growth Calculator, then compare the current account details on the savings page.