1. What is the Compound Interest Formula?

The compound interest formula calculates how much your savings will grow over time when interest is earned on both the principal and accumulated interest. This is how high yield savings accounts like Amex India typically work.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount (₹)
• \( P \) — Principal amount (₹)
• \( r \) — Annual interest rate (decimal)
• \( n \) — Number of compounding periods per year
• \( t \) — Time in years

Explanation: The more frequently interest is compounded, the greater your returns will be over time.

3. Understanding High Yield Savings Accounts

Details: Amex India's high yield savings accounts typically offer higher interest rates (e.g., ~7.00% APY) than regular savings accounts, with interest compounded daily or monthly.

4. Using the Calculator

Tips: Enter principal in ₹, annual interest rate (e.g., 7.00 for 7%), time in years, and select compounding frequency. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for Amex India savings?
A: Rates vary (typically around 7.00% APY) and may change. Check Amex India's current offerings for exact rates.

Q2: How does compounding frequency affect returns?
A: More frequent compounding (daily vs. annually) yields slightly higher returns due to earning interest on interest more often.

Q3: Are there any fees or minimum balances?
A: High yield accounts may have minimum balance requirements. Check with Amex India for specific account terms.

Q4: Is this calculator specific to Amex India?
A: While designed with Amex India's typical rates in mind, it works for any savings account with compound interest.

Q5: How accurate are these projections?
A: Projections assume constant interest rate and no withdrawals. Actual results may vary with rate changes or account activity.