High-Yield Savings Account Calculator
Calculate how your savings can grow over time with compound interest. See how different interest rates and contribution amounts affect your savings growth.
Total Savings
$0.00
| Initial Deposit | $0.00 |
|---|---|
| Total Contributions | $0.00 |
| Total Interest Earned | $0.00 |
| After Taxes | $0.00 |
| Effective Annual Rate | 0.00% |
About High-Yield Savings Accounts
A high-yield savings account is a type of savings account that typically offers a much higher interest rate than a standard savings account. These accounts are often offered by online banks and can help your money grow faster while still maintaining liquidity.
How Compound Interest Works
Compound interest is the interest you earn on both your original money and on the interest you keep accumulating. The more frequently your interest compounds, the faster your savings will grow. Here's how it works:
- You deposit money into your savings account (initial deposit)
- The bank pays you interest on your balance at regular intervals (compounding periods)
- The next interest payment is calculated on your new, higher balance
- This cycle continues, with your balance growing faster over time
Why High-Yield Savings Accounts Matter
With traditional savings accounts offering very low interest rates, high-yield savings accounts can significantly increase your earnings on money you want to keep safe and accessible. They're ideal for emergency funds, short-term savings goals, or any money you don't need immediate access to but want to keep liquid.
Tips for Maximizing Your Savings
- Look for accounts with the highest APY (Annual Percentage Yield)
- Consider online banks which often offer better rates than traditional banks
- Automate your monthly contributions to ensure consistent savings
- Reinvest your interest earnings to take full advantage of compounding
- Regularly compare rates as they can change over time