High Yield Savings Account Calculator

High Yield Savings Account Calculator - Ally

Savings Growth Formula:

\[ A = P \times \left(1 + \frac{r}{n}\right)^{n \times t} \]

Initial Deposit:

Annual Interest Rate (APY):

Time Period:

years

Monthly Contribution:

Future Value:

Interest Earned:

Total Contributions:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is a High Yield Savings Account?

A High Yield Savings Account (HYSA) is a type of savings account that offers significantly higher interest rates than traditional savings accounts. Ally Bank's HYSA currently offers 3.50% APY, allowing your money to grow faster while remaining FDIC-insured.

2. How the Calculator Works

The calculator uses the compound interest formula with regular contributions:

\[ A = P \times \left(1 + \frac{r}{n}\right)^{n \times t} + PMT \times \frac{\left(1 + \frac{r}{n}\right)^{n \times t} - 1}{\frac{r}{n}} \]

Where:

$ A $ — Future value of investment
$ P $ — Initial principal balance
$ r $ — Annual interest rate (decimal)
$ n $ — Number of compounding periods per year (12 for monthly)
$ t $ — Time in years
$ PMT $ — Monthly contribution amount

Explanation: The formula accounts for compound interest on your initial deposit plus the growth of regular monthly contributions.

3. Benefits of High Yield Savings

Details: HYSAs provide liquidity, safety (FDIC insurance), and better returns than regular savings. They're ideal for emergency funds or short-term savings goals.

4. Using the Calculator

Tips: Enter your initial deposit, the APY (defaults to Ally's 3.50%), time period, and optional monthly contributions. See how compound interest grows your savings over time.

5. Frequently Asked Questions (FAQ)

Q1: Is my money safe in an HYSA?
A: Yes, Ally Bank is FDIC-insured up to $250,000 per depositor, per account type.

Q2: How does APY differ from APR?
A: APY includes compound interest effects, while APR doesn't. APY gives the true annual earning potential.

Q3: Are there fees or minimum balances?
A: Ally's HYSA has no monthly fees and no minimum balance requirement.

Q4: How often is interest compounded?
A: Ally compounds interest daily and pays it monthly.

Q5: Can I access my money when needed?
A: Yes, you can make up to 6 withdrawals per month without penalty (federal regulation).