Savings Information Savings amount? $ Interest rate? % Evaluation period (years)? Printer-friendly version Annual Percentage Yield by Compounding Method Yearly Quarterly Monthly Daily Chart TableSavings Balance at End of Evaluation PeriodYearly CompoundingQuarterly CompoundingMonthly CompoundingDaily CompoundingSavings BalanceSubmit How interest is calculated can have a great impact on the interest earned by your account and how your savings grow. Compound interest arises when interest is added to the principal and when the interest that has also been added earns interest. You will see your account balance grow more quickly with accounts that pay interest more frequently. The "Annual Percentage Yield" or APY is the effective annual rate of return once the effect of compounding interest is factored in.