What is the difference between the Dividend Rate and APY on your CD account?

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I tried finding answers online, but nothing seems clear to me. So, here’s what’s up: I opened a CD at a credit union for 18 months with a 4.25% APY. As far as I get it, when it’s done, I’ll get back 4.25% of my deposit plus some extra money. But here’s the thing: the account also mentions a 4.17% Dividend Rate. Will I get that like a monthly payment into my account, similar to a regular savings account?

The account info says this about the Dividend Rate: APY stands for Annual Percentage Yield. It’s about how much money you earn on your deposits in a year, considering compound interest. The dividend rate is the annual rate paid on an account, without considering compound interest.

I’m just not sure what that means for the Dividend Rate. So basically, I’m asking if that extra money will come into my account regularly.

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“Dividend” is the term used in credit unions to refer to interest. Essentially, it’s akin to an interest rate of 4.17%. When considering compounding effects, this translates to an annual percentage yield (APY) of 4.25%. It’s essentially two different perspectives on the same concept, rather than distinct entities.

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It yields a yield of 4.25% after compounding annually at a rate of 4.17%.