compound annual return n (Banking & Finance) the total return available from an investment, deposit, etc, when the interest earned is used to augment the capital. Abbreviation: CAR Collins English Dictionary ? Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014