1. What is the Amex High Yield Savings?

The American Express High Yield Savings Account offers competitive interest rates (currently 3.60% APY) with daily compounding. This calculator helps estimate your savings growth over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.036 for 3.6%)
• \( t \) — Time in years

Explanation: The formula calculates daily compounding by dividing the annual rate by 365 and compounding for each day over the investment period.

3. Importance of Compound Interest

Details: Daily compounding means your interest earns interest every day, leading to faster growth compared to simple interest or less frequent compounding.

4. Using the Calculator

Tips: Enter your initial deposit, the annual interest rate (default is 0.036 for 3.6% APY), and the number of years you plan to save. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Amex HYSA rate?
A: As of 2023, it's 3.60% APY, but rates may change. Check the latest rate before calculating.

Q2: How often is interest compounded?
A: Interest is compounded daily and credited monthly.

Q3: Are there any fees?
A: Amex HYSA has no monthly maintenance fees or minimum balance requirements.

Q4: How does this compare to regular savings?
A: The 3.60% APY is significantly higher than typical bank savings accounts (often <0.50%).

Q5: Is my money safe in an Amex HYSA?
A: Yes, funds are FDIC insured up to $250,000 per depositor.