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, which currently offers 3.60% APY (Annual Percentage Yield) according to NerdWallet. It uses daily compounding to show how your money grows over time.

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

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

Explanation: The formula accounts for daily compounding (365 times per year), which slightly increases your earnings compared to simple annual compounding.

3. Importance of Daily Compounding

Details: Daily compounding means interest is calculated and added to your account balance every day, allowing your savings to grow slightly faster than with annual compounding.

4. Using the Calculator

Tips: Enter your initial deposit amount, the current APY (default is 3.60%), 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 High Yield Savings APY?
A: As of 2023, NerdWallet reports it at 3.60% APY, but rates may change. Check current rates before making decisions.

Q2: How often is interest paid?
A: American Express pays interest monthly, but it compounds daily for maximum growth.

Q3: Are there any fees with Amex savings?
A: No monthly maintenance fees and no minimum balance requirements.

Q4: How does this compare to regular savings accounts?
A: High-yield savings typically offer 10-20x higher interest than traditional savings accounts.

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