💵 High-Yield Savings Calculator
See how much a high-yield savings account earns with your deposits and APY — balance and interest year by year, and how much more you earn than in a traditional savings account.
Your Savings
Enter your bank's current APY — rates change often.
Many traditional bank savings accounts pay well under 1% — check your own statement.
| Year | Total Deposits | Interest Earned | Balance |
|---|---|---|---|
| 1 | $16,000 | $509 | $16,509 |
| 2 | $22,000 | $1,279 | $23,279 |
| 3 | $28,000 | $2,319 | $30,319 |
| 4 | $34,000 | $3,641 | $37,641 |
| 5 | $40,000 | $5,256 | $45,256 |
How This High-Yield Savings Calculator Works
Enter what you're starting with, what you'll add each month, and the account's APY. The calculator shows your balance and interest year by year, and how much more you'd earn than in a lower-rate account. Because APY already reflects compounding, the result is the same whether your bank compounds daily or monthly.
When a high-yield savings account makes sense
High-yield savings accounts suit money you may need soon: an emergency fund, a down payment, or savings for a purchase in the next few years. Your balance doesn't fall with the market, and you can withdraw at any time. For money you won't touch for many years, investing has historically grown faster — compare the two with our compound interest calculator. To size a specific target, try the savings goal calculator.
Why the rate can change
High-yield savings rates are variable and move with the Federal Reserve's interest rate decisions. Our guide to how Fed interest rates affect your money explains why, and when locking a rate in a CD can make sense. Keep in mind that inflation reduces what your savings can buy — see how inflation affects your money.
Frequently Asked Questions
How is high-yield savings interest calculated?
Banks quote an annual percentage yield (APY), which already includes the effect of compounding. A $10,000 balance at 4.00% APY earns $400 over a year if the rate stays the same, whether interest compounds daily or monthly. This calculator converts the APY into an equivalent monthly rate and adds your deposits at the end of each month.
What's the difference between APY and APR?
APR is the simple annual rate before compounding; APY is what you actually earn after compounding over a year. For savings accounts, compare APYs — they are directly comparable between banks.
Is interest from a high-yield savings account taxed?
Yes. Savings interest is taxed as ordinary income in the year you earn it, at your federal (and usually state) income tax rate. Banks generally send a Form 1099-INT when you earn $10 or more in a year.
Is a high-yield savings account safe?
Accounts at FDIC-insured banks (or NCUA-insured credit unions) are protected up to $250,000 per depositor, per institution, per ownership category. Check that the bank or the partner bank behind a fintech app is insured.
Will my high-yield savings rate change?
Usually, yes. High-yield savings rates are variable and tend to follow the Federal Reserve: they rise when the Fed raises rates and fall after cuts. If you want to lock in a rate, a certificate of deposit (CD) fixes it for a set term.
Estimates for illustration only. Assumes a constant APY and month-end deposits, before taxes. Not financial advice.
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