#You Know what is APR-&-APY
*APR (Annual Percentage Rate)* on Binance shows the simple, fixed yearly interest you earn on your deposit—no compounding. It’s calculated only on the original principal, so the return stays linear over time (e.g., 10 % APR on 1 000 USDT gives you 100 USDT after one year) .
*APY (Annual Percentage Yield)* includes the effect of compounding. Interest earned each period is added to the principal, so you earn interest on interest. The more often it compounds (daily, weekly, monthly), the higher the effective yield compared to the same‑numbered APR (e.g., 10 % APR compounded daily ≈ 10.51 % APY) .
In practice, Binance products that display *APR* (like many Binance Earn fixed‑term savings) pay out interest without auto‑reinvesting, while products showing *APY* (such as some flexible staking or liquidity pools) automatically reinvest earnings, giving you a higher total return over the same period