What is APY?

1 ⤊

Citi is offering 5% APY, does this mean if I put in $10,000 I would earn $500 per month just on intrest alone??

2006-07-26 18:12:54 · 2 answers · asked by TNA Ambassador 6 in Business & Finance ➔ Investing

2 answers

APY is annual percentage yield. It's the yield you earn on a deposit over the course of a year, including the effects of compound interest.

So 5% APY means that you would $500 per year on a deposit of $10,000 (not per month).

2006-07-26 18:20:00 · answer #1 · answered by Spot! 3 · 1⤊ 0⤋

Annual percentage yield, $500/yr I think

2006-07-27 01:16:31 · answer #2 · answered by I am the Id 2 · 0⤊ 0⤋