APY stands for Annual Percentage Yield, which is a measure of the total interest earned on an investment or savings account over one year, including the effect of compounding. It is expressed as a percentage and helps investors compare different financial products easily.
In India, many people use APY to evaluate fixed deposits, mutual funds, and other savings schemes. For example, if a bank offers a 5% APY on a savings account, it means your money grows by 5% annually with compounding. Always check the APY when choosing financial products to maximize returns. |
