#### Annual Percentage Yield (APY) - Savings Accounts

The annual rate of interest that is paid to account holders
for savings deposits is expressed in APY, or annual percentage
yield.
The APY takes into account the compounding of interest, is based
on a 365 day year cycle and supposes no
withdrawals or deposits to the account. The APY helps to translate
differently expressed yields into a practical and easily understandable
format for the consumer and investor alike.

For those that wish to calculate the APY the formula is:

(1
+ r) ^{np} - 1
Where the
number of periods (np) value is 12 when interest is compounded
monthly. (though if interest would be compounded quarterly,
the number of periods value for the APY would be '4')

The rate (r) is equal to the % rate for periods of compounding. If
the rate offered is .7% compounded monthly, the resulting APY is
actually 8.73%.

(1.007) ^{12} -
1 = .0873