Annual Percentage Yield (APY) Definition | Business Dictionaries from AllBusiness.com

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Business Definition for: Annual Percentage Yield (APY)

Annual Percentage Yield (APY)

amount of interest expressed as a percentage rate, a deposit account (or a share draft account) would earn in a year at a stated interest rate. The APY disclosure, showing the effect of interest compounding, assumes that funds remain on deposit for a full 365-day year at the advertised rate, and no additional deposits or withdrawals are made.

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