APY (annual percentage yield) tells you what your money actually earns in a year including compounding. APR (annual percentage rate) is the simple interest rate before compounding.
When a bank advertises a savings rate, compare APY. Two accounts with the same APR can pay different APYs depending on how often interest compounds (daily, monthly, quarterly).
Quick example
Suppose you keep USD 10,000 in savings for a full year and do not add or withdraw:
| Stated rate | Compounding | Approx. interest earned |
|---|---|---|
| 4.00% APR, compounded monthly | monthly | slightly more than USD 400 |
| 4.00% APY | already includes compounding | USD 400 by definition of APY |
Banks are required to quote APY for deposit products in a standardized way so shoppers can compare. That is why our savings rates table sorts by APY.
Why small differences matter
A 0.25 percentage point gap on USD 20,000 is about USD 50 per year before tax, every year you leave the balance parked. Over multi-year cash reserves, switching to a higher APY with comparable safety (FDIC or NCUA insurance limits) is one of the lowest-effort money moves available.
What APY does not tell you
- Fees: a monthly maintenance fee can erase a headline rate.
- Tiers: some accounts pay the top APY only above a balance threshold.
- Requirements: linked checking, debit transactions, or direct deposit may be required.
- Variable rates: HYSA APYs can change when the Fed moves; a CD locks a rate for a term.
APY vs APR on loans and cards
On credit cards and loans, APR is the headline cost of borrowing (plus fees in some contexts). Do not use savings-APY intuition for revolving debt. For the borrowing side of the vocabulary, see APY vs APR explained.
How we show rates on Vistarates
Every APY in our tables carries a verified date and, where available, a source URL. Automated jobs refresh benchmarks from official series; bank product rows stay curated until an offer feed is connected. Always re-check the bank’s page before you apply.