1. What is the Amex High Yield Savings Calculator?

This calculator estimates the growth of your savings in an American Express High Yield Savings Account using daily compounding interest. It helps you project how your money can grow over time with a competitive APY (Annual Percentage Yield).

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment amount ($)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time in years

Explanation: The formula accounts for daily compounding (365 times per year), which maximizes your earnings compared to simple interest or less frequent compounding.

3. Importance of Compound Interest

Details: Compound interest allows your savings to grow exponentially over time as you earn interest on both your principal and accumulated interest. High-yield savings accounts like Amex's typically offer rates much higher than traditional savings accounts.

4. Using the Calculator

Tips: Enter your initial deposit amount, the current APY (e.g., 4.25%), and the number of years you plan to keep the money in the account. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does Amex's APY compare to regular savings accounts?
A: Amex's high-yield savings typically offers 10-20 times higher interest than traditional bank savings accounts (0.01%-0.1% APY).

Q2: Is the interest rate guaranteed?
A: No, APY can change based on market conditions, though high-yield savings rates tend to move with the Federal Reserve's rate changes.

Q3: Are there any fees or minimum balances?
A: Amex High Yield Savings has no monthly fees and no minimum balance requirements.

Q4: How often is interest compounded and paid?
A: Interest is compounded daily and credited to your account monthly.

Q5: Is my money FDIC insured?
A: Yes, deposits are FDIC insured up to $250,000 per depositor.