The numbers don’t lie—see how much interest you’re earning (or missing out on) with our savings calculator (2024)

Our savings calculator makes it easy to find out. Using the three sliders at the bottom of the calculator, select your initial deposit, how much you plan to contribute each month going forward, and the number of years you plan to save at this pace.

As you make your selections, the calculator will automatically update to display your total estimated interest earnings based on a rate of 5% APY compared to what you would earn if you stuck with the national average savings account rate (just 0.46%).This figure can be adjusted to match the rate of your preferred savings account provider.

Compare savings account rates

A rate of 5% APY might seem high—and it is when compared to the typical savings account rate. The good news is that many banks offer competitive savings account rates in this range—you just need to know where to find them. Here are a few banks that regularly offer rates above 4.50% APY:

What you need to know about high-yield savings accounts

To make the most of your high-yield savings account, it’s important to understand how they compare to regular savings accounts. Differences in interest rates and where to find the best rates are two of the key differences.

How high-yield savings accounts work

A high-yield savings account is a type of savings account that typically offers a higher interest rate compared to a traditional savings account. You can find these accounts at banks and credit unions. However, you’ll often find the best rates at online banks, which have lower overhead costs than traditional brick-and-mortar banks and pass those savings on to customers through higher yields and lower fees.

Interest on a high-yield savings account is compounded, meaning it’s periodically calculated and added to your balance. Essentially, your interest earns interest. Interest can compound annually, quarterly, monthly, or even daily—the more often interest compounds, the faster your balance grows.

For example, say you deposited $10,000 in a high-yield savings account with a 3% APY that compounds annually. At the end of a year, you’d have $10,300.00 in your account. But if the interest compounded daily, you’d have $10,304.53.

Today, the national average savings account interest rate is 0.46%, according to the Federal Deposit Insurance Corp. (FDIC). However, some of the best high-yield savings accounts offer 5% annual interest rates or higher.

What to look for in a high-yield savings account

Before opening a high-yield savings account, shopping around and comparing accounts from several financial institutions is essential. Some of the major features you might evaluate include:

• Annual percentage yield (APY): The main appeal of a high-yield savings account is the higher interest rate or annual percentage yield. The higher the APY, the more your money will grow over time.
• Fees: Earning a high interest rate doesn’t matter if you lose money to monthly fees. Before opening an account, find out what types of fees the bank charges, such as ATM fees, transfer fees, and penalties for going below a minimum balance. You should choose an account with low or no fees to maximize your earnings.
• Minimum balance requirements: Some banks require a minimum account balance to earn the highest yield, avoid fees, or keep the account open. You might be better off with a different account if you can’t maintain this balance. Prioritize high-yield savings accounts with low or no minimum balance requirements.
• Accessibility: It’s important to have easy access to your money. Look for options like online and mobile access, ATM access, and the speed of bank-to-bank transfers.
• Customer service: Good customer service can be crucial if you need a helping hand. Before opening an account, read reviews from sites like the Better Business Bureau and Trustpilot to learn about other customers’ experiences. Also, check whether the bank offers multiple methods to reach support, including phone, chat, email, etc.
• FDIC or NCUA insurance: Make sure any bank or credit union you choose is insured by the FDIC or the National Credit Union Administration (NCUA). If the bank or credit union fails, this insurance means your deposits are protected up to $250,000 per depositor, ownership category, and institution.

How to make the best out of your savings

Getting a great rate is just the first step. If you want to pump up your savings even more, consider these tips:

• Automate: Many banks let you set up automatic monthly transfers from your checking account to your savings account. These transfers help ensure you regularly contribute to your savings without having to lift a finger.
• Link a checking account: If your bank offers overdraft protection, you can link your savings account with your checking account and use the balance as a buffer to cover transactions that would put you in the red. Remember that some financial institutions may still charge a fee for overdraft protection, but it’s often much less than an overdraft or insufficient funds fee.
• Open more than one account: If you’re saving for multiple goals simultaneously, you may want to open a separate savings account for each. Some savings accounts even allow you to create “sub-accounts” to organize your savings into buckets. Whether it’s a vacation, emergency fund, or college tuition, separating your savings can help you better track your progress.
• Use a budgeting app: To maximize the interest you’re earning in a high-yield savings account, be sure you’re socking away as much as possible. A budgeting app can help you find room in your budget and increase your monthly savings.

Frequently asked questions