1. What is the AMEX Savings Calculator?

The American Express Savings Account Calculator helps you project the growth of your savings with daily compounding interest at the current AMEX High Yield Savings rate (3.60% APY as of 2023).

2. How Does the Calculator Work?

The calculator uses the daily compounding 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 accounts for daily compounding, which means interest is calculated and added to your balance every day.

3. Understanding Daily Compounding

Details: Daily compounding means you earn interest on your interest every day, leading to faster growth compared to monthly or annual compounding.

4. Using the Calculator

Tips: Enter your initial deposit amount, number of years you plan to save, and the current interest rate (default is 3.6% or 0.036).

5. Frequently Asked Questions (FAQ)

Q1: What is the current AMEX savings rate?
A: As of 2023, it's 3.60% APY, but this may change. Check current rates before calculations.

Q2: How often is interest paid?
A: AMEX pays interest monthly, but it compounds daily for more accurate growth projections.

Q3: Are there any fees?
A: AMEX High Yield Savings has no monthly maintenance fees or minimum balance requirements.

Q4: Is this calculator specific to AMEX?
A: While designed for AMEX's current rate, it works for any savings account with daily compounding.

Q5: How accurate are the projections?
A: Projections assume no withdrawals and a constant interest rate. Actual results may vary.