What It Is:
The 30-day annualized yield is a measure of the yearly rate paid to investors of an interest-bearing account, based on the returns earned in a 30-day period.

The 30-day annualized yield is a measure of return usually used for mutual funds. It is found by dividing the net investment income per share earned during a 30-day period by the maximum offering price per share on the last day of that period, according to the following formula: 

Yield = 2[((a-b/cd) + 1)⁶ -1]

Where: 
a = dividends and interest earned during the period. 
b = expenses accrued for the period (net of reimbursements). 
c = the average daily number of shares outstanding during the period that were entitled to receive dividends. 
d = the maximum offering price per share on the last day of the period. 

How It Works/Example:
Let's assume the Company XYZ mutual fund needs to calculate its 30-day annualized return. If the fund earned $10,000 of dividends and interest during the period, recorded $5,000 of expenses during the period, owned 100,000 shares that were entitled to receive dividends, and the maximum offering price on the 30th day of the period was $45, then by using the formula above, we can calculate that the XYZ fund's 30-day annualized return was:

Yield = 2[(($10,000 - $5,000 / 100,000 x $45)+1)⁶ - 1]
= 0.01337 of 1.337%

It is important to note that the Securities and Exchange strictly defines the 30-day yield formula and use. It also provides strict guidelines for calculating the interest income, accounting for the discounts or premiums on certain securities, tallying expenses, and undeclared earned income that affect the calculations.

Why It Matters:
The 30-day annualized yield gives investors a way to compare interest-bearing accounts' or mutual funds' returns. The measure tells investors what the fund would yield in a year if it continued on its current earnings path. Without this and other standardized, required disclosures, accounts could manipulate their yield calculations. 

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