High-Yield Savings (APY) Calculator
See what your savings earn at a real APY — and how much more than a typical bank account.
Project high-yield savings growth with optional monthly deposits, and quantify the gap versus a typical low-rate account.
What "high-yield" really buys you
A high-yield savings account is an ordinary savings account that pays a much higher rate — and it carries the same FDIC insurance as a big-bank account. The catch is only that the best rates come from online banks. The FDIC national average savings rate sits around 0.40%, while top high-yield accounts have recently paid roughly 4–5%. On the same balance, that's more than ten times the interest, for the same risk.
Savings is the right home for money you might need soon — an emergency fund, a near-term goal — where you don't want market risk. For money you won't touch for years, investing usually wins. See how a lump sum grows over the long run with the Compound Interest Calculator, and make sure inflation isn't quietly eating the difference with the Inflation Calculator.
Because APY already expresses the effective annual return after compounding, the calculator treats it as the yearly growth rate and converts it to a monthly equivalent for your recurring deposits. Your starting balance compounds for the full term; each monthly deposit compounds for the months remaining.
The "extra you earn" figure is the same inputs run at your compare rate (default 0.40%, the FDIC national average) subtracted from the result at your APY — the cost of leaving money in a low-rate account. Remember that savings APYs are variable and move with the Fed; interest is taxed as ordinary income. For money with a fixed time horizon, compare against locking a rate, and for long horizons weigh savings against investing in the Compound Interest Calculator.
High-yield savings: common questions
What is APY?
APY (annual percentage yield) is the real rate your savings earn in a year, including the effect of compounding. Unlike a simple interest rate, APY already bakes in how often interest is added, so it's the honest number to compare accounts by. A 4.40% APY means $10,000 grows to about $10,440 after one year if you add nothing.
What's the difference between APY and interest rate?
The interest rate (or APR) is the base rate before compounding; APY is the effective rate after compounding. Because high-yield savings accounts typically compound daily and pay monthly, the APY is slightly higher than the stated rate. Always compare accounts by APY — it reflects what you actually earn.
Why do high-yield savings accounts pay so much more than my bank?
Most high-yield savings accounts are offered by online banks with no branches and lower overhead, so they pass more of the interest to you. The FDIC national average savings rate is around 0.40%, while top high-yield accounts have recently paid roughly 4–5% APY — more than ten times as much on the same balance, with the same FDIC insurance.
Is high-yield savings interest taxable?
Yes. Interest earned in a high-yield savings account is taxed as ordinary income in the year you earn it, and the bank reports it on a 1099-INT if you earn $10 or more. This calculator shows pre-tax interest; your after-tax amount depends on your tax bracket.
Are high-yield savings rates going to drop?
High-yield savings APYs move with the Federal Reserve's benchmark rate — when the Fed cuts, savings rates usually follow within weeks, and when it holds or hikes, they stay high. Rates are variable, so the APY you open with can change. For money you won't touch for a set period, a CD can lock a rate in.