### Question
What does annual percentage yield mean?


### Answer
**Annual percentage yield** has the following meaning in *12 U.S.C. § 4313*:

> the total amount of interest that would be received on a $100 deposit, based on the annual rate of simple interest and the frequency of compounding for a 365-day period, expressed as a percentage calculated by a method which shall be prescribed by the Bureau in regulations

#### Citation:
  - *12 U.S.C. § 4313*
  - Heading: **CHAPTER 44-TRUTH IN SAVINGS**

