It seems Interest Rate is the amount you get per month, and APY is the amount you will get after 1 year X 12 which will always be slightly higher since interest is compounded monthly or maybe even daily.
Suppose you put $100 into the bank. At 5% interest you would assume after 12 months you will have $105 but really you will have $105.13, which gives you an APY of 5.1267%. So basically, since it's a CD and you can't take out the money before 12 months (at least without a fee), you're looking at a 5% interest rate. Put in 10K and when you take it out you'll have $10,500.