What is APY?

What is APY?

APY (Annual Percentage Yield) represents the projected annual return of a savings product, taking into account compound interest.

In other words, it measures the total growth of your capital over one year, including the effect of interest earned on previously accumulated interest.

How does APY work?

Unlike an APR (Annual Percentage Rate), which shows a flat yearly rate without considering compounding, APY reflects the real performance of an investment when profits are reinvested automatically.

The more frequently interest is paid and compounded, the higher the effective return.

At Vancelian, returns are calculated and paid daily.

This means your capital grows progressively, returns may appear lower at first but increase over time thanks to compounding.

It’s not a simple daily rate divided by 365, but a true annualised return that evolves as your balance grows.

Our savings products, such as Flexible Project and Future Project, follow this compounding model, allowing you to benefit from steady, automated returns, credited directly to your available balance.