Yes, for comparing deposit accounts with the same fees and balance rules. Under the Consumer Financial Protection Bureau’s Truth in Savings rules (Regulation DD), the annual percentage yield (APY) measures the total interest paid on an account based on the interest rate and how often that interest is compounded. A higher APY means you earn more interest on the same principal over a year when other terms are equal.
APY is the figure banks must use so consumers can comparison-shop savings, checking, money market, and CD accounts on a consistent basis. Still weigh fees, minimum-balance requirements, and whether the rate can change; those can offset a higher advertised APY.
Source: CFPB, Appendix A to Part 1030 — Annual Percentage Yield Calculation (Regulation DD)
Image: A jar piggy bank for savings. From Pixabay via Wikimedia Commons, CC0.