APR vs. APY and Other Annualized Rates
Annualized rates help compare financial products, but acronyms and legal definitions vary by country. Broadly, borrowing disclosures often emphasize an annual percentage rate, while savings disclosures may use a yield that reflects compounding.
APR-style measures
For loans, an annual percentage rate may incorporate interest and certain fees under local disclosure rules. Exactly which fees are included is jurisdiction-specific.
APY-style measures
For deposit products, an annual percentage yield or equivalent effective rate generally reflects compounding over a year, assuming the stated conditions are met.
Compare the official disclosure
When shopping for a product, use the standardized disclosure required in your country rather than trying to convert marketing claims yourself.
A practical next step
Write down the one number or fact from this topic that affects your situation—such as a balance, rate, due date, fee, target amount or policy limit. Then verify any jurisdiction-specific rule with an official source before making a decision.