In the context of TISA, what does APY stand for?

In the context of the Truth in Savings Act (TISA), APY stands for Annual Percentage Yield. This term is crucial within TISA as it reflects the total amount of interest earned on a deposit account over a year, expressed as a percentage. The APY calculation takes into account the interest rate as well as the frequency of compounding, which provides consumers with a clear understanding of the potential return on their savings.

The prominence of APY in TISA is designed to promote transparency, enabling consumers to easily compare different savings products offered by financial institutions. By mandating the disclosure of APY, TISA aims to ensure that account holders are fully informed about the actual yield they can expect from their accounts, allowing for better financial decisions.

The other terms listed, such as "Annual Percentage Year," "Annual Profit Yield," and "Averaged Price Year," are not standard financial definitions and do not relate to the context of savings accounts or interest calculations in a meaningful way. Thus, they do not serve the purpose intended by TISA, which focuses specifically on the yield from savings accounts and the interest rates that apply.