APY stands for Annual Percentage Yield, which is the amount that you earn if you deposit funds for a year, without withdrawing anything meanwhile.
This means that if you deposit $100,000, and your interest rate over the next year is 15% APY, after 1 year you'll earn $15,000 in total interest. Your total balance will then be $115,000 - a gain of 15%.
How much are the daily interest payments?
At 15% APY, every day you will be earning approximately 0.038% of what your balance is.
These daily payments get added to your balance automatically. 0.038% interest earned and compounded 365 times (every day for a year) amounts to 15% earned over a full year.
You don't need to wait a full year to access your funds. You are free to make withdrawals at any time, including the daily interest payments you received until that point.
An APY figure is not a guarantee that the rate will remain fixed for a full year
At Stablegains, we aim to offer a high APY for as long as possible, but at some future point due to the changing conditions in the lending markets we help you earn yield from, we might be forced to change it.
Your interest accrues daily, so anything you earned until that possible point at 15% APY is yours to keep.
Why is the APY figure useful?
APY is the most common way to show what the yield on a savings tool or product is. You can use it to compare how much you could be earning using different products. A few things to keep in mind:
- APY is not the same as APR. Here is our article explaining how they are different.
- Before you can start earning with a savings product, you'll need to deposit your funds. Deposit transactions can sometimes incur high costs. For example, credit card payments frequently require you to pay a 3% fee, so if you keep funds for a year in a 15% APY account, your actual earnings after the fees will be closer to 12%. At Stablegains, we aim to provide deposit methods with the lowest fees possible.