1. What is the Amex High Yield Savings Account?

The American Express High Yield Savings Account currently offers a competitive 3.60% APY (Annual Percentage Yield). This calculator helps you project how your savings would grow over time with daily compounding interest.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

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

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

3. Benefits of Compound Interest

Details: With daily compounding, you earn interest on both your initial principal and the accumulated interest from previous periods, leading to exponential growth over time.

4. Using the Calculator

Tips: Enter your initial deposit amount in dollars, the number of years you plan to save, and the interest rate (default is 0.036 for 3.6% APY). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often is interest compounded in Amex savings accounts?
A: Interest is compounded daily and credited to your account monthly.

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

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

Q4: How does this compare to regular savings accounts?
A: The national average savings account rate is around 0.46% APY, making Amex's 3.60% APY significantly higher.

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