Annual Percentage Rate (APR) is the annualized interest rate without accounting for the compounding effect.

The APR is intended to give borrowers a standard way to compare the rewards/costs of different deposits/loans and make informed decisions about which assets to choose.

In general, when all other factors are equal, a loan with a lower APR will be less expensive than a loan with a higher APR, conversely a deposit with higher APR is more lucrative than one with a lower APR.