APY — Annual Percentage Yield — shows the yearly return after compounding is taken into account. It is the fairest number for comparing similar savings products in the US.
It is still easy to misuse. A high CD APY does not “beat” a savings account APY if you may need the money soon. One product locks your cash; the other usually does not.
Check whether the rate applies to all of your money
Some accounts pay a high APY only on the first $5,000, or only for a short introductory period. Work out what you would earn on your real balance over a full year.
Decide access first
Need the money in the near term? Compare savings accounts. Can you leave it for a set term? Compare CDs of similar length. Then use APY, then check FDIC or NCUA cover.
That order stops you locking away money you will need next month because a chart looked attractive.