By Leanna Kelly When you invest in a product, you expect a return above and beyond what you paid for that product. This is APY. What is APY? It stands for annual percentage yield, and it represents the rate of return on an investment. APY takes into account compounding interest payments over the course of a year. It’s typically used to show the prospect of short-term investments that compound monthly (or more frequently). The smaller the time between compounding, the higher the APY.
APY exclusively refers to investment yield; however, it’s the same concept as effective annual rate (EAR), which is the actual interest …read more
