In money talk what is APY.

Question

i put my money in a CD and i do not know how (APY) works

Answer 1

It stands for "Annual Percentage Yield"

Answer 2

it is annual percentage yield.  The annual percentage yield is generally used to refer to the rate paid to a depositor or lender by a financial institution, whereas annual percentage rate refers to the rate paid to a financial institution by a borrower. Since the yield is to the lender, however, perspective may lead to confusion about the term: for example, a banker (as lender) may refer to the yield on the bank's loan portfolio, whereas borrowers would refer to the interest rate on their loans from the bank. Similarly, borrowers from a bank may refer to the yield on their deposits, while the bank refers to the rate paid on their deposit accounts