High Yield.savings Account Calculator
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Reviewed by Calculator Editorial Team
High yield savings accounts (HYSA) offer higher interest rates than traditional savings accounts. This calculator helps you estimate potential earnings and compare different account options.
How High Yield Savings Accounts Work
High yield savings accounts are FDIC-insured deposits that pay interest rates significantly higher than regular savings accounts. These accounts typically have:
- Minimum balance requirements (often $100 or $250)
- Higher interest rates (often 0.50% to 5.00% APY)
- No monthly maintenance fees
- Limited transaction privileges (usually 2-6 withdrawals per month)
Key Differences
Unlike money market accounts, high yield savings accounts typically don't offer checks or debit cards. They're designed for liquidity with some restrictions to maintain the higher interest rate.
How Interest is Calculated
The interest on high yield savings accounts is typically calculated using the APY (Annual Percentage Yield) formula:
APY Formula
APY = (1 + (r/n))^(n*t) - 1
Where:
- r = monthly interest rate (APR/12)
- n = number of times interest is compounded per year (usually 12 for monthly)
- t = time in years
For example, if you deposit $1,000 at 4.50% APY for one year with monthly compounding, your balance would grow to approximately $1,045.89.
Comparison of High Yield Savings Accounts
Here's a comparison of some popular high yield savings account options:
| Account | Minimum Balance | APY (as of 2023) | Withdrawals/Month |
|---|---|---|---|
| Ally Bank Online Savings | $0 | 4.30% | 6 |
| Capital One 360 Performance Savings | $250 | 4.25% | 6 |
| Discover Online Savings | $1 | 4.30% | 6 |
| Marcus by Goldman Sachs Online Savings | $0 | 4.40% | 6 |
| Sofi Money | $0 | 4.60% | 6 |
Note: Interest rates are subject to change and may vary by location. Always check the most current rates before opening an account.
Frequently Asked Questions
What is the difference between APY and APR?
APY (Annual Percentage Yield) shows the actual interest earned after compounding, while APR (Annual Percentage Rate) is the stated interest rate before compounding. APY is always higher than APR for the same account.
Are high yield savings accounts FDIC-insured?
Yes, high yield savings accounts are FDIC-insured up to the standard $250,000 limit, just like regular savings accounts.
Can I withdraw money from a high yield savings account?
Yes, but most accounts limit withdrawals to 2-6 times per month. Exceeding this limit may result in fees or loss of interest benefits.
How do I find the best high yield savings account?
Use our calculator to compare rates, then check each bank's specific requirements for minimum balances, withdrawal limits, and any fees. Online banks often offer the highest rates.