## What is APY in Banks and Why Should It Matter to You
The annual percentage yield (APY) is a figure you see in bank advertisements but rarely understand in depth. Essentially, it is the actual rate of return you earn on your money, considering how interest compounds year after year. Unlike a simple interest rate, the APY shows exactly how much your investment will grow when the bank automatically reinvests the generated interest.
## The Current Landscape: How APYs Vary in Banks
In early 2023, traditional savings accounts in the U.S. offered an average APY of just 0.06%, a figure virtually in
View OriginalThe annual percentage yield (APY) is a figure you see in bank advertisements but rarely understand in depth. Essentially, it is the actual rate of return you earn on your money, considering how interest compounds year after year. Unlike a simple interest rate, the APY shows exactly how much your investment will grow when the bank automatically reinvests the generated interest.
## The Current Landscape: How APYs Vary in Banks
In early 2023, traditional savings accounts in the U.S. offered an average APY of just 0.06%, a figure virtually in