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What is Annual Percentage Yield (APY)?

April 26, 2017annual APY Business Finance PERCENTAGE personal finance yield

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What is Annual Percentage Yield (APY)?

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I believe it means something like this: the annual “rate” is 4.89%, which is credited probably monthly based on your balance. Since each month you are building up a little bit of money, by the end of the year, it is closer to 5.00% of your original amount, not exactly 4.89%.