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What is APY and how is it used?

April 26, 2017APY Used

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What is APY and how is it used?

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“APY” stands for “annual percentage yield.” The annual percentage yield represents the amount of interest earned in one year expressed as a percentage rate on an account based on the interest rate and the frequency of the compounding. Interest on Discover Money Market Accounts are compounded daily and credited monthly. The more often compounding takes place, the more interest is earned on the account.