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What is APY?

APY helps compare deposit earnings by reflecting interest and compounding over a year.

Banking · Published and updated August 23, 2026 · By Moneyward Editorial Team
In this guide
  1. Annual percentage yield expresses the annualized return
  2. APY can change on variable-rate accounts, so
  3. Fees and withdrawal patterns can reduce what
  4. Compare APY together with minimum deposits, balance

1. Annual percentage yield expresses the annualized return on a deposit account.

Annual percentage yield expresses the annualized return on a deposit account. This step should be verified against the institution or agency involved in your situation. Requirements can vary, and a careful comparison is more useful than applying quickly.

2. APY can change on variable-rate accounts, so the current rate is not a guarantee of future earnings.

APY can change on variable-rate accounts, so the current rate is not a guarantee of future earnings. This step should be verified against the institution or agency involved in your situation. Requirements can vary, and a careful comparison is more useful than applying quickly.

3. Fees and withdrawal patterns can reduce what you actually earn.

Fees and withdrawal patterns can reduce what you actually earn. This step should be verified against the institution or agency involved in your situation. Requirements can vary, and a careful comparison is more useful than applying quickly.

4. Compare APY together with minimum deposits, balance requirements, access, and insurance status.

Compare APY together with minimum deposits, balance requirements, access, and insurance status. This step should be verified against the institution or agency involved in your situation. Requirements can vary, and a careful comparison is more useful than applying quickly.

What to do next

Write down the requirements, costs, and deadlines that apply to you. Use official channels for applications and never send sensitive personal information in response to an unsolicited message.

Sources

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