Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the difference between Annual Percentage Yield (APY) and the average annual yield?

April 26, 2017annual Annual percentage yield APY average difference yield

0

Posted

What is the difference between Annual Percentage Yield (APY) and the average annual yield?

1 Answer

0

Posted

There is significant difference between these terms. The APY calculation formula was established by the Board of Governors of the Federal Reserve System for the uniform quotation of deposit interest rates and yields. It is a standard dictated by the government designed to clarify deposit yields.