1. What is the High Yield Savings Calculator?

This calculator helps you estimate the growth of your money in a high-yield savings account like American Express Personal Savings, which compounds interest daily. It shows how your savings can grow over time with compound interest.

2. How Does the Calculator Work?

The calculator uses the daily compound interest formula:

Where:

• \( A \) — Final amount
• \( P \) — Principal investment amount
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time the money is invested for (years)

Explanation: The formula accounts for daily compounding, which means interest is calculated on your principal plus previously earned interest every day.

3. Understanding Compound Interest

Details: Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods. High-yield savings accounts like Amex typically offer much higher interest rates than traditional savings accounts.

4. Using the Calculator

Tips: Enter your initial deposit amount, the annual interest rate (e.g., 4.25 for 4.25% APY), and the number of years you plan to keep the money in the account. The calculator will show your projected balance and total interest earned.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Amex high-yield savings rate?
A: As of 2023, Amex offers around 4.25% APY, but rates change frequently based on Federal Reserve decisions.

Q2: How often is interest compounded in Amex savings?
A: Amex compounds interest daily and pays it monthly.

Q3: Are there any fees with Amex high-yield savings?
A: Amex Personal Savings has no monthly maintenance fees or minimum balance requirements.

Q4: How does this compare to regular savings accounts?
A: Traditional savings accounts average 0.42% APY, while high-yield accounts offer 10x higher rates.

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