what does apy represent
Annual percentage yield (APY) is a helpful way to evaluate how much you earn on your money. Instead of simply looking at a quoted interest rate, you get a better idea of your true potential earnings when you use APY. What is APY? APY tells you how much youâll earn with compound interest over the course of a year. When you deposit funds into a savings account, money market, or certificate of deposit (CD), youâll earn interest. APY can show you exactly how much interest youâll earn.