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What is the difference between APY and interest?

Annual Percentage Yield (APY)

The annual percentage yield (APY) is the rate you can earn on your account over a year and includes compounded interest.

Interest

We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. Tiered rate accounts earn interest on the entire account balance each day at the interest rate and annual percentage yield in effect for the appropriate balance tier. 

Accrued interest is credited to the balance in the account on the last business day of the statement cycle. We use a monthly statement cycle. Accrued interest that is credited to the balance in the account begins to earn interest no later than the next business day and compounds with each statement cycle.

Your interest rate and APY are both disclosed in the Product Terms & Conditions, which are available on the website and provided at the time of account opening, except for Certificates of Deposit, where your APY can be found in Online Banking and at the time of account opening.

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{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
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{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
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{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
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A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
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{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
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Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be required. Deposit accounts are subject to approval. Deposit products are FDIC-insured up to $250,000 per depositor, per ownership category.

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