# APY (Annual Percentage Yield)

*Borrowing & Credit — Finicade finance glossary*

The yearly return on savings once compounding is counted — the savings-side twin of APR. Because interest earns interest, APY is slightly higher than the plain rate, and it's the honest number to compare accounts by.

**Also known as:** annual percentage yield

**Related terms:** [APR (Annual Percentage Rate)](https://finicade.com/glossary/apr), [Compound Interest](https://finicade.com/glossary/compound-interest), [Interest Rate](https://finicade.com/glossary/interest-rate)

Source: https://finicade.com/glossary/apy