1. What is the High Yield Savings Calculator?

This calculator estimates the growth of your savings in a Schwab high-yield savings account using compound interest. It helps you project how your money can grow over time with regular compounding.

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)
• \( n \) — Compounding periods per year
• \( t \) — Time in years

Explanation: The formula accounts for the effect of compounding, where interest is earned on both the initial principal and accumulated interest.

3. Importance of Compound Interest

Details: Compound interest can significantly boost your savings over time. The more frequent the compounding and the longer the time period, the greater the growth potential.

4. Using the Calculator

Tips: Enter your initial deposit, expected annual interest rate (APY), time period, and compounding frequency. Current Schwab high-yield savings rates can be found on their website.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical APY for Schwab high-yield savings?
A: Rates vary but are typically higher than traditional savings accounts. Check Schwab's current rates as they change with market conditions.

Q2: How often do Schwab savings accounts compound?
A: Most high-yield savings accounts compound interest daily and credit it monthly.

Q3: Are there fees or minimums for Schwab savings?
A: Schwab typically has no monthly fees and low minimums, but check current account terms.

Q4: How accurate is this calculator?
A: It provides estimates assuming constant rates. Actual results may vary with rate changes or additional deposits/withdrawals.

Q5: Is my money FDIC insured?
A: Yes, Schwab savings accounts are FDIC insured up to applicable limits.