The acronym APR stands for Annual Percentage Rate. It offers a value closer to the true cost (in the case of a loan) or yield (in the case of a deposit) of the financial product contracted. This financial term is, in short, an indicative reference for the cost or affective yield of a financial product. A characteristic of this rate is that in comparison to the nominal interest rate and in the case of interest accruing monthly, the APR will be higher than the nominal rate when interest is calculated on the accrued interest.