APY is short for 'annual percentage yield', which is the total return rate that is earned on an interest-bearing asset or savings account. The compounding interest should be taken into account when the APY percentage is projected. An APY of 5% will turn $100 into $105 after exactly one year.
Annual Percentage Yield (APY)
Annual Percentage Yield (APY) Explainer Video
What is Annual Percentage Yield (APY)? | Crypto Terms Explained