American Express Savings Interest Calculator

Compound Interest Formula:

\[ Interest = P \times (1 + \frac{r}{365})^{(365 \times t)} - P \]

Interest Earned:

Total Amount:

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1. What is the Amex Savings Interest Calculator?

This calculator computes the interest earned on an American Express High Yield Savings Account, which currently offers 3.60% APY (Annual Percentage Yield) with daily compounding.

2. How Does the Calculator Work?

The calculator uses the daily compound interest formula:

\[ Interest = P \times (1 + \frac{r}{365})^{(365 \times t)} - P \]

Where:

$ P $ — Principal amount ($)
$ r $ — Annual interest rate (decimal form, e.g., 0.036 for 3.6%)
$ t $ — Time in years
365 — Number of compounding periods per year (daily)

Explanation: The formula calculates how much your money grows with daily compounding interest, which is how Amex savings accounts accrue interest.

3. Understanding Daily Compounding

Details: With daily compounding, interest is calculated on your principal plus any accumulated interest each day, leading to slightly higher returns than simple annual compounding.

4. Using the Calculator

Tips: Enter your principal amount, the interest rate (default is 0.036 for 3.6% APY), and the time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often does Amex pay interest?
A: American Express pays interest monthly, but it compounds daily for more accurate growth calculation.

Q2: Is the 3.60% APY guaranteed?
A: No, APY can change based on market conditions, though Amex has historically been competitive.

Q3: Are there any fees with Amex savings?
A: There are no monthly maintenance fees or minimum balance requirements.

Q4: How does this compare to other banks?
A: As of 2023, 3.60% APY is among the highest rates for online savings accounts.

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