Synchrony High Yield Savings Calculator

Compound Interest Formula:

\[ A = P \times (1 + \frac{r}{365})^{365 \times t} \]

Final Amount (A):

Interest Earned:

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1. What is the Synchrony High Yield Savings Calculator?

This calculator helps you project the growth of your savings in a Synchrony High Yield Savings Account (currently offering 4.75% APY) or compare it with other options like American Express savings accounts. It uses daily compounding interest to show your potential earnings over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + \frac{r}{365})^{365 \times t} \]

Where:

$ A $ — Final amount ($)
$ P $ — Principal amount ($)
$ r $ — Annual interest rate (decimal)
$ t $ — Time in years

Explanation: The formula calculates daily compounding (365 times per year) to show how your savings grow over time with a high-yield savings account.

3. Comparing Synchrony vs Amex Savings

Details: Synchrony currently offers 4.75% APY, while American Express offers a similar rate. This calculator helps you compare different scenarios by adjusting the interest rate to see how each bank's offering would affect your savings growth.

4. Using the Calculator

Tips: Enter your initial deposit amount, the annual interest rate (default is 4.75% for Synchrony), and the number of years you plan to save. The calculator will show your projected balance and total interest earned.

5. Frequently Asked Questions (FAQ)

Q1: How often is interest compounded in high-yield savings accounts?
A: Most high-yield savings accounts, including Synchrony and Amex, compound interest daily and pay it monthly.

Q2: Is the interest rate guaranteed?
A: No, rates can change based on market conditions. The calculator shows projections based on current rates.

Q3: How does this compare to regular savings accounts?
A: High-yield accounts typically offer 10-20 times higher interest than traditional savings accounts (0.01%-0.05% APY).

Q4: Are there fees or minimum balances?
A: Synchrony and Amex both have no monthly fees and $0 minimum balance requirements.

Q5: How safe are these accounts?
A: Both Synchrony and American Express savings accounts are FDIC-insured up to $250,000 per depositor.