APY (Annual Percentage Yield)
APY is the real rate of return on savings over a year, including the effect of compound interest. Because it accounts for interest earning interest, APY is always equal to or higher than the stated interest rate, and it is the number to compare when shopping for savings accounts or CDs.
A 4.4% rate compounded monthly produces an APY of about 4.49%. Banks are required to advertise APY precisely so consumers can compare accounts on equal footing regardless of how often each one compounds.
Put it to work
Savings Calculator
Watch your savings account grow: enter your balance, monthly deposit, and APY to see the future value and every dollar of interest along the way.
CD Calculator
Calculate a certificate of deposit's value at maturity, the interest earned, and the true APY from any rate and compounding frequency.
Compound Interest Calculator
See how your savings grow with compound interest and monthly contributions — final balance, interest earned, and a year-by-year growth table.