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Glossary

APY

What savings actually earn in a year once compounding is counted.

APY is annual percentage yield: the return on savings over a year with compounding included. APR ignores compounding; APY does not, which is why APY is the number to compare savings accounts and CDs on.

The gap between a headline rate and the APY is small at low rates and widens as rates climb.

Today, in real numbers

The national average savings rate is 0.38%, so $10,000 in an average account earns roughly $38 a year. High-yield accounts routinely pay several times that, which is the whole argument for moving cash.

See the savings page
Calculators
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