Definitions for "Annual Percentage Yield" Add To Word List
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APY. The rate of return on an investment for a one-year period. For an interest-bearing...
A precisely calculated measure of yield paid on a bank deposit account.
The interest rate that reflects the actual interest earned on a yearly basis expressed as a percentage.
The amount of interest earned on a deposit account (such as a CD or IRA), including the effect of interest compounding, assuming funds remain in the account for one year.
The annual percentage yield (APY) is the actual annual rate of return you could earn if you leave your principal and dividends in your account for a full 365-day year. The annual percentage yield you would actually receive is dependent on the dividend rate, frequency of compounding and average balances you maintain in your account. It is the number most useful to you for comparing deposit accounts.
This is the actual annual rate of return. The A.P.Y. is the rate that is actually earned/paid in one year. To calculate the A.P.Y. take one plus the periodic rate and raise it to the number of periods in a year. The following is an example... a 3% per month rate has an A.P.Y. of 42.58% (1.03^12 -1). Using this calculation will give you a more accurate perspective of the performance of your Marketocracy fund because it takes into account the affect of compounding.
The amount of interest you will earn on a deposit on a yearly basis expressed as a percentage.
The true annual rate of return; that is, the rate actually earned or paid in one year, taking into account the effect of compounding. Not to be confused with Annual Percentage Rate or Annual Rate of Return, both of which are less accurate.
This calculation displays the effective annual rate of return, taking into account the effect of compounding interest. To calculate the APY, add one to the periodic rate and raise it to the number of periods in a year.
The true or effective rate of interest when compounding is taken into effect.
A percentage rate reflecting the total amount of interest paid on any account, based on the interest rate and compounding for a one year period.
The return on an investment, over one year.
Percentage, required by Truth in Savings regulations to be disclosed on interest-bearing deposit accounts, that reflects the total interest to be received, based on an institution's compounding method for a 365-day year.
The APY is the interest rate earned or paid in one year, when taking into account the affects of compounding. The APY is calculated by taking one plus the periodic rate raised to the number of periods in a year. For example, a 1% per month rate has an A.P.Y. of 12.68
The amount of interest, (expressed in percentage points), that when calculated equals the total amount earned over a year. · See Also · Interest
A percentage rate that reflects the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a period of 365 days.
Reflects the total amount of interest paid on a deposit account, based on the interest rate and the frequency of compounding for a 365-day period.
(APY) - The percentage required to be disclosed in Truth in Savings regulations on interest-bearing deposit accounts (savings accounts and CDs). This number reflects the total interest to be received over a 365-day year according to the bank's own method of compounding. Therefore, the use of APY creates a level playing field through which to compare returns from bank accounts and CDs that may use differing compounding methodology. Ordinarily, cash equivalents other than those offered by banks and FCUs do not use APY methods of compounding. To compare a non-bank or FCU-issued products with the APY of a product issued by one of these institutions, it is ordinarily necessary to adjust upward the non-APY rate by between 6 and 10 basis points (.06% to .10%), depending on the frequency of interest payments or accrual of that product.
A calculation of a savings account's annual rate of return that reflects compound interest. If, for example, a certificate of deposit offers a fixed annual rate of 4.0% with interest that is compounded monthly, the annual percentage yield would be 4.07%.
Annual interest rate if dividends are left in the account to compound.
The interest earned on a deposit for 365-day period. The APY is determined by applying the interest rate, factoring the frequency with which interest is compounded and calculating interest for a 365-day period.
A percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365-day period.
(APY) The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the effect of compounding.
The rate of return on an investment for an one year period. For an interest bearing deposit account, such as a savings account, APY is equal to one plus the periodic rate (expressed as a decimal) raised to the number of periods in one year. Due to compounding, the APY will be greater than the periodic interest rate multiplied by the number of periods in the year.
The amount paid to customers as interest on their savings deposit. This is a term associated with savings accounts.
The rate of interest earned by an account owner in a year, if no withdrawals occur. All financial institutions must calculate the APY in the same way.
Total amount of dividends paid based on the dividend rate and compounding frequency for 365 days.
A percentage rate reflecting the amount of interest a savings account would earn over a one-year period at a given interest rate — if all interest and principal were left in the account to compound.
The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the affect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68% (1.01^12).
The amount of interest earned on a deposit account (checking, savings, CDs, IRAs, etc.), including the effect of interest compounding, assuming funds remain in the account for a full 365 days.