Definition

Annual Percentage Yield—the interest rate banks advertise when it's high, and whisper when it's low. Compound interest's friendly name.

Example Usage

This savings account offers 4.5% APY, which is much better than the previous rate of 0.01%.

Source: Banking and finance terminology

Related Terms

Intermediate

discounted

To reduce a price, debt, or future obligation by a mathematical percentage because apparently money today is worth more than money tomorrow (who knew?).

💰 Finance / Accounting
Intermediate

build-up

An accumulation of stuff that's allegedly important but probably just clutter. In accounting and finance, it's either a composite core repair for damaged teeth or a gradual increase in liabilities that makes auditors nervous. Choose your disaster wisely.

💰 Finance / Accounting
Beginner

invest

To throw money, time, or your hopes and dreams at something in the expectation that it will magically multiply rather than disappear into the void. In finance, it's the art of delaying gratification while praying to the gods of compound interest. Pro tip: works better with actual research than pure optimism.

💰 Finance / Accounting
Advanced

cash conversion cycle

The time between paying suppliers and collecting from customers, measured in days. Negative is magical—you get paid before paying bills, turning working capital into a profit center. Positive means you're funding your customers' purchases with your own money.

💰 Finance / Accounting
Intermediate

Double Entry Bookkeeping

The accounting system where every transaction affects at least two accounts (a debit and a credit), ensuring the fundamental accounting equation always balances. It's elegant, logical, and has been fooling people for 600 years.

💰 Finance / Accounting
Beginner

cash

Money in tangible form that doesn't require a banking app, passwords, or digital footprints—the preferred payment method of people doing things they'd rather not explain to auditors. Useful for those who remember what actual currency feels like.

💰 Finance / Accounting

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