Annual Percentage Yield (APY)
Annual Percentage Yield
Sometimes, interest rates are quoted on a daily or monthly basis. Compound Interest Rate may be shown as the simple rate. Depositors should know the actual interest rate being offered and should be able to compare interest rates offered by different entities. Regulators may make it compulsory for any organisation accepting deposits to quote a percentage rate reflecting the total amount of interest paid on a deposit account based on the interest rate and the effect of compounding for one year.