What is APY?

cy520520 2025-10-3 18:30:03 views 1275
APY stands for Annual Percentage Yield, which is a measure of the total interest earned on an investment or savings account over one year, including the effect of compounding. It is expressed as a percentage and helps investors compare different financial products easily.

In India, many people use APY to evaluate fixed deposits, mutual funds, and other savings schemes. For example, if a bank offers a 5% APY on a savings account, it means your money grows by 5% annually with compounding. Always check the APY when choosing financial products to maximize returns.
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