Annual percentage yield (APY) is the effective annual rate of return on an investment. Learn how it accounts for compounding interest and how it differs from APR.

APY APY stands for Annual Percentage Yield, which is the actual rate of return per year, including compound interest. The APY is typically the rate you'll see featured for the CD you're considering.

If you’re considering opening a Certificate of Deposit (CD) or already have one, you might be wondering how to calculate CD interest and estimate how much you’ll earn over time. CDs are a low-risk ...