How Does APY Work

Sir I want to deposit money for the safety of my child in the bank so I coined a name APY in the paperwork of the bank so can you tell me that what does it mean

[Shaleen]

Hello Annual Percentage Yield APY refers to how much money you earn on a deposit over a year, taking into account compounding interest.

For example, if you put $1,000 into an account for one year at 1.0% non-compounding, or simple interest, you will have $1,010 at the end of the year.

The APY is 1.0%—the same as the interest rate.

APY formula




Suppose the interest on that account compounds daily, as it does with Bank accounts.

The total interest you would be paid for the year is $10.05, for a total value of $1010.05 at the end of the year. In this case, the APY is 1.005%.

There are a number of computer programs and calculators online that can help you calculate APY


Indian Banks which provide good returns

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

IDBI Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab and Sind Bank
State Bank of India

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank