The annual percentage yield (APY) is the interest you earn for one year you hold your assets in the CoinLoan Interest Account. The stated APY for any term less than a year is still correct because the yields you've received are credited to your account every month.
Let us consider the example to see how APY works. 10% APY from 1,000 EUR deposit means that you’ll earn 100 EUR for one year (360 days). To figure out your daily interest, divide 100 EUR by 360. In our case, you’ll get ~ 0.28 EUR per day.
In fact, you’ll earn more than that thanks to the principle of compound interest. Compound interest means that earned interest will be added to the principal sum of a deposit, or in other words, you’ll receive interest on interest. It is the result, with every passing month you earn more and more: on the principal sum plus previously accumulated interest.