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Glossary

APY (Annual Percentage Yield)

The yearly return on savings or investments, accounting for compounding.

APY is the effective annual return on a deposit or investment once compounding is taken into account. Two accounts with the same nominal rate but different compounding frequencies will have different APYs.

APY is the savings-side mirror of APR: APR is what you pay to borrow, APY is what you earn to save. A higher APY means more interest earned over a year.

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