The Wall Street Journal explains, "What Is APY?" They write, "The annual percentage yield determines how much money you'​ll make with your savings. If you are looking to maximize your savings -- and who isn'​t? -- moving your money into an account with a higher annual percentage rate, or APY, can be a smart idea. The APY is the rate of return you get on your savings over the course of a year, taking into account both the interest rate and the effects of compounding. Regulators require banks to calculate APYs using the same formula and to publish the figure for products like savings accounts, checking accounts and CDs to make it easier for you to compare rates. Understanding how APYs can affect your savings is key to making your money grow. Continue reading to learn how APY works and what you can do to maximize your money." The brief explains, "When discussing APYs and interest, it'​s important to understand the difference between simple and compounded interest. Simple interest: With simple interest, you only earn interest on the principal amount in your account. Compound interest: By contrast, compound interest means you earn interest on your original principal plus any accumulated interest. Depending on the bank and your account type, interest can compound daily, weekly or monthly. Compounding is an incredibly powerful tool for helping to grow your money over time, especially with higher APYs. A bank account'​s APY measures the total amount of interest the bank pays on the account based on its interest rate and the frequency of compounding. As you save money in your account with a bank or credit union, a higher APY can help your money grow faster." The piece also lists the "Best High Yield Savings Accounts for December 2022."

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