10 points for a banking question! 10 points....?

I just turned 18 and so i wanna open a bank acct. Now, Im new at this so I have a question. At wahignton mutual online, they have an online offer where u open a savings and checkings account with them and you get an interest rate of 4.89% and a APY of 5.00%. Now, what does this mean? That Im gonna make 5% more every year or what?