APY Calculator
Calculate the Annual Percentage Yield (APY) based on your nominal interest rate and compounding frequency to accurately compare savings accounts, FDs, and investments.
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Frequently Asked Questions
What is the difference between APY and interest rate?
The nominal interest rate doesn't account for compounding within the year, while APY reflects the actual annual return including the effect of compounding frequency.
Does more frequent compounding always mean higher APY?
Yes, for the same nominal rate, more frequent compounding (daily vs annually) results in a slightly higher APY due to interest earning interest more often.
Why should I compare APY instead of interest rate?
APY gives you the true annual return, making it the fairest way to compare savings accounts or deposits that compound at different frequencies.