Definition of

Annual Percentage Yield (APY)

The annual rate of return on an investment.

Example: A $1,000 investment at 10% per year earns $100 in one year, and has an APY of 10%.

Example: A $1,000 investment at 5% per half-year earns $102.50 in one year, and has an APY of 10.25%.
Annual Percentage Yield (APY)