Retrieving "Variable Rate Annuities" from the archives
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Annual Percentage Yield
Linked via "variable-rate annuities"
When these conditions are violated, APY ceases to represent the actual yield. For instance, in accounts with tiered interest rates based on balance thresholds (e.g., higher rates for balances over $\$100,000$), a single APY figure becomes misleading. Financial analysts sometimes use the "Weighted Effective Annual Return (WEAR)/)" in such scenarios, a metric which statistically factors in the typical transactional flow of the c…