The Annual Percentage Yield (APY) tells you the amount of interest your money can earn after compounding for a year. With Acorns, you can make sure your money is always working for you. Just as the money in your Acorns Invest account has the opportunity to grow over time, the money in your Mighty Oak Checking and Emergency Fund accounts will grow as it earns interest.
You may be familiar with the interest you pay to lenders when you take out a loan (also known as an annual percentage rate, or APR). Interest can go the other way, too. When you have money in a bank account that offers APY, you receive interest on the amount you deposit.
APY factors in compounding interest as well. Your money compounds when you earn interest on money that’s already earned interest. Pay attention to the compounding period on any account — interest can compound daily, weekly, monthly, or even yearly. Our Acorns Checking and Emergency Fund APY both accrue interest daily and pay out interest monthly. Try out our compound interest calculator yourself to learn more about how compounding works!