annual percentage yield

noun

: a measurement of an account's interest rate based upon the interest that accrues on the account balance after a period of one year

Bankrate, which surveyed 211 banks and credit unions nationwide, found that 58 of the financial institutions offer such accounts with an average annual percentage yield of 3.3 percent.

—Jennifer Saranow Schultz, NYTimes.com, 1 Apr. 2010

—abbreviation APY

Word History

First Known Use

1969, in the meaning defined above

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