1. What is the Highest Yield Savings Calculator?

This calculator shows how your savings grow with daily compounding at the highest available APY (Annual Percentage Yield) rates. It uses the current top rate (e.g., 4.66% from Axos Bank) but can calculate for any rate you input.

2. How Does the Calculator Work?

The calculator uses the daily compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.0466 for 4.66%)
• \( t \) — Time in years

Explanation: Interest is compounded daily (365 times per year) which maximizes your earnings compared to monthly or annual compounding.

3. Importance of Compound Interest

Details: Compound interest means you earn interest on both your initial deposit and the accumulated interest. Over time, this creates exponential growth of your savings.

4. Using the Calculator

Tips:

• Enter your initial deposit amount in dollars
• Use the current highest APY (default is 4.66%) or any rate you want to test
• Enter the time period in years (can use decimals for partial years)
• All values must be positive numbers

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between APR and APY?
A: APR doesn't account for compounding, while APY does. APY gives you the true annual return on your savings.

Q2: Are high-yield savings accounts safe?
A: Yes, when offered by FDIC-insured banks (up to $250,000 per depositor).

Q3: How often do interest rates change?
A: Rates can change frequently based on Federal Reserve policy and market conditions.

Q4: Is there a minimum balance required?
A: Requirements vary by bank. Some have no minimum, others require $1,000+ to earn the highest rate.

Q5: Are there any fees?
A: Most high-yield accounts have no monthly fees, but always check the terms.