Rate and APY are two different ways to measure the return of your investment.

The APY is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and the frequency of compounding for an annual period. 

The Dividend Rate is what you receive on your investment on a daily basis, regardless of the investment term (length of time) or how your interest earnings are reinvested.

For all accounts, the Dividend Rate and APY are fixed and will be in effect for the initial term of the account.  For accounts subject to dividend compounding, the APY is based on an assumption that dividends will remain on deposit until maturity.  A withdrawal of dividends will reduce earnings.