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Loading ...The Annual Percentage Yield is a financial formula, used to calculate how much a deposit earns as interest. The higher the APY, the better the investments & the return!
As its name suggests, the Annual Percentage Yield is calculated for the period of one year. APY is a compound interest (you earn interest on your initial deposit + on your earnings). Different companies compound on a different time basis-daily, monthly, quarterly, semi-annual, yearly. Accounts with frequent deposits usually tend to have more frequent compounding periods. Higher compounding frequency means better return, better APY. <!–adsense–>
When choosing investment accounts, inquire about the compounding frequency. The account with the higher frequency is the one you want to put your money in 
Tags: apy | credit | apr | investment | interest | compound
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September 25th, 2007 at 2:21 pm
Nice article thanks. I like this blog btw very clean. How can you post smilies in comments?