APY

[ey-pee-wahy]

noun

Finance, Banking.

1. annual percentage yield: the annual rate of interest that a savings account or investment will return to the person who owns it, including any compound interest.

Word History and Origins

Origin of APY¹

First recorded in 1970–75

Example Sentences

To grow your money before the holiday rush, consider parking your sinking fund in high-yield savings accounts that often let you earn up to 5% APY.

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But that’s impossible to predict, so this calculation assumes a flat 4.8% APY for the entire 18-month period.

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That rate definitely beats the pitifully low national average, which is 0.24 percent APY, according to Bankrate’s April 26 weekly survey.

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Ted Rossman, senior industry analyst for Bankrate and CreditCards.com, said that “Apple’s 4.15 percent APY isn’t at the very top of the table, but it’s close.”

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Recently, those deals have been between $3 million and $5 million APY.

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