[{"data":1,"prerenderedAt":356},["ShallowReactive",2],{"term:annual-percentage-yield":3},{"term":4,"related":343},{"id":5,"title":6,"body":7,"category":325,"description":326,"extension":327,"faq":328,"meta":329,"navigation":330,"path":331,"related":332,"seo":336,"stem":337,"takeaways":338,"__hash__":342},"terms\u002Fterms\u002Fannual-percentage-yield.md","Annual Percentage Yield (APY)",{"type":8,"value":9,"toc":318},"minimark",[10,15,19,22,26,311,315],[11,12,14],"h2",{"id":13},"understanding-annual-percentage-yield","Understanding Annual Percentage Yield",[16,17,18],"p",{},"APY shows what a savings account or CD actually earns in a year once interest is compounded. It is the right number for comparing savings products.",[16,20,21],{},"The more often interest compounds, the higher the APY for the same stated rate.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,99],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,94],"semantics",{},[48,49,50,54,58,89,92],"mrow",{},[51,52,53],"mtext",{},"APY",[55,56,57],"mo",{},"=",[59,60,61,87],"msup",{},[48,62,63,67,71,74,84],{},[55,64,66],{"fence":65},"true","(",[68,69,70],"mn",{},"1",[55,72,73],{},"+",[75,76,77,81],"mfrac",{},[78,79,80],"mi",{},"r",[78,82,83],{},"n",[55,85,86],{"fence":65},")",[78,88,83],{},[55,90,91],{},"−",[68,93,70],{},[95,96,98],"annotation",{"encoding":97},"application\u002Fx-tex","\\text{APY} = \\left(1 + \\frac{r}{n}\\right)^{n} - 1",[27,100,103,132,301],{"className":101,"ariaHidden":65},[102],"katex-html",[27,104,107,112,120,125,129],{"className":105},[106],"base",[27,108],{"className":109,"style":111},[110],"strut","height:0.6833em;",[27,113,117],{"className":114},[115,116],"mord","text",[27,118,53],{"className":119},[115],[27,121],{"className":122,"style":124},[123],"mspace","margin-right:0.2778em;",[27,126,57],{"className":127},[128],"mrel",[27,130],{"className":131,"style":124},[123],[27,133,135,139,292,295,298],{"className":134},[106],[27,136],{"className":137,"style":138},[110],"height:1.8903em;vertical-align:-0.686em;",[27,140,143,258],{"className":141},[142],"minner",[27,144,146,157,160,164,168,171,252],{"className":145},[142],[27,147,152],{"className":148,"style":151},[149,150],"mopen","delimcenter","top:0em;",[27,153,66],{"className":154},[155,156],"delimsizing","size2",[27,158,70],{"className":159},[115],[27,161],{"className":162,"style":163},[123],"margin-right:0.2222em;",[27,165,73],{"className":166},[167],"mbin",[27,169],{"className":170,"style":163},[123],[27,172,174,178,248],{"className":173},[115],[27,175],{"className":176},[149,177],"nulldelimiter",[27,179,181],{"className":180},[75],[27,182,186,239],{"className":183},[184,185],"vlist-t","vlist-t2",[27,187,190,234],{"className":188},[189],"vlist-r",[27,191,195,210,221],{"className":192,"style":194},[193],"vlist","height:1.1076em;",[27,196,198,203],{"style":197},"top:-2.314em;",[27,199],{"className":200,"style":202},[201],"pstrut","height:3em;",[27,204,206],{"className":205},[115],[27,207,83],{"className":208},[115,209],"mathnormal",[27,211,213,216],{"style":212},"top:-3.23em;",[27,214],{"className":215,"style":202},[201],[27,217],{"className":218,"style":220},[219],"frac-line","border-bottom-width:0.04em;",[27,222,224,227],{"style":223},"top:-3.677em;",[27,225],{"className":226,"style":202},[201],[27,228,230],{"className":229},[115],[27,231,80],{"className":232,"style":233},[115,209],"margin-right:0.0278em;",[27,235,238],{"className":236},[237],"vlist-s","​",[27,240,242],{"className":241},[189],[27,243,246],{"className":244,"style":245},[193],"height:0.686em;",[27,247],{},[27,249],{"className":250},[251,177],"mclose",[27,253,255],{"className":254,"style":151},[251,150],[27,256,86],{"className":257},[155,156],[27,259,262],{"className":260},[261],"msupsub",[27,263,265],{"className":264},[184],[27,266,268],{"className":267},[189],[27,269,272],{"className":270,"style":271},[193],"height:1.2043em;",[27,273,275,279],{"style":274},"top:-3.6029em;margin-right:0.05em;",[27,276],{"className":277,"style":278},[201],"height:2.7em;",[27,280,286],{"className":281},[282,283,284,285],"sizing","reset-size6","size3","mtight",[27,287,289],{"className":288},[115,285],[27,290,83],{"className":291},[115,209,285],[27,293],{"className":294,"style":163},[123],[27,296,91],{"className":297},[167],[27,299],{"className":300,"style":163},[123],[27,302,304,308],{"className":303},[106],[27,305],{"className":306,"style":307},[110],"height:0.6444em;",[27,309,70],{"className":310},[115],[11,312,314],{"id":313},"example","Example",[16,316,317],{},"A 5% rate compounded monthly gives an APY of about 5.12%.",{"title":319,"searchDepth":320,"depth":320,"links":321},"",2,[322,323,324],{"id":13,"depth":320,"text":14},{"id":24,"depth":320,"text":25},{"id":313,"depth":320,"text":314},"personal-finance","The yearly return on savings, including the effect of compounding.","md",[],{},true,"\u002Fterms\u002Fannual-percentage-yield",[333,334,335],"annual-percentage-rate","compound-interest","emergency-fund",{"title":6,"description":326},"terms\u002Fannual-percentage-yield",[339,340,341],"APY includes compounding; the stated rate may not.","Use APY to compare savings accounts and CDs.","Higher compounding frequency raises APY slightly.","ozFbk6hAmZFZS2UZn33tz3YtSwLeEDLD5hDsDaqB-xo",[344,348,352],{"title":345,"description":346,"path":347},"Annual Percentage Rate (APR)","The yearly cost of borrowing, including interest and certain fees, as a percentage.","\u002Fterms\u002Fannual-percentage-rate",{"title":349,"description":350,"path":351},"Compound Interest","Interest earned on both the original principal and on interest already earned.","\u002Fterms\u002Fcompound-interest",{"title":353,"description":354,"path":355},"Emergency Fund","Cash set aside for unexpected, necessary expenses such as job loss or urgent repairs.","\u002Fterms\u002Femergency-fund",1793374004487]