High-Yield Savings Account Calculator: See Your Monthly Interest
This high-yield savings account calculator shows how your savings could grow with monthly deposits and today’s APY. Enter your starting balance, how much you add each month, the APY and the number of years.
Quick answer
At 4% APY, $5,000 plus $200 a month grows to about $19,319 in 5 years, including about $2,319 of interest. A $10,000 balance earns about $400 a year at 4% APY, compared with $50 at 0.5%.
How to use the high-yield savings account calculator
- Starting balance: what you have in the account today.
- Monthly deposit: what you add each month.
- APY: the annual percentage yield the bank pays.
- Years: how long you plan to save.
Why the APY matters
| $10,000 at | Interest in 1 year | Interest in 5 years |
|---|---|---|
| 0.5% APY | $50 | $253 |
| 2% APY | $200 | $1,041 |
| 4% APY | $400 | $2,167 |
| 5% APY | $500 | $2,763 |
What a high-yield savings account is
It is a regular savings account that pays a higher APY than the traditional average, often offered by online banks with lower costs. Money at an FDIC-insured bank is protected up to $250,000 per depositor, per bank, per ownership category. The rate is usually variable, so it can go up or down with the economy.
How to choose a high-yield savings account
- Compare the APY, but also fees and minimum balance rules.
- Confirm FDIC (bank) or NCUA (credit union) insurance.
- Check how fast transfers to your checking account are.
- Read whether the APY is a promotional rate that drops later.
- Look at the national average from the FDIC to see if the offer is good.
What this means for you
- A high-yield savings account is ideal for an emergency fund and short-term goals.
- Even a few points of APY can mean hundreds of dollars a year on a typical balance.
- Interest is taxable income; banks send Form 1099-INT when you earn $10 or more.
Frequently asked questions
How much interest will $10,000 earn in a high-yield savings account?
About $400 a year at 4% APY and about $500 at 5% APY, if the rate stays the same.
Are high-yield savings accounts safe?
Yes, at FDIC-insured banks or NCUA-insured credit unions, up to the insurance limit.
Can the APY change?
Yes. Most high-yield savings accounts have variable rates that can change at any time, often following the Federal Reserve.
How often is interest paid?
Many accounts compound daily and credit interest monthly. The APY includes the effect of compounding.
Is a high-yield savings account better than a CD?
It gives easy access to your money; a CD locks a rate for a fixed term. See our comparison of CDs vs high-yield savings.
Related guides and calculators
- How much interest will $10,000 earn in a savings account?
- How savings account interest is calculated
- CD calculator
- Emergency fund calculator
Sources
This guide is for educational purposes only and is not financial advice. The figures are estimates before taxes, fees and inflation, and real rates, returns and rules change over time.
