A real example: what $10,000 actually earns
Put $10,000 in a high-yield savings account paying 4.5% APY and leave it untouched for a year — you'd earn about $450 in interest. The same $10,000 in a typical 0.4% bank account earns roughly $40. Same money, more than 10× the interest, just for choosing the right account.
Keep adding to it and compounding does the heavy lifting. Start with $10,000 plus $200 a month at 4.5% APY, and after 5 years you'd have around $26,000 — about $3,900 of that is interest you never had to work for. Enter your own deposit and rate above to project your balance.
APY vs interest rate — what's the difference?
The APY (annual percentage yield) already includes the effect of compounding, so it reflects what you'll actually earn in a year. This calculator converts the APY into an effective monthly rate so the projection matches the quoted yield.
Where to keep cash so it actually grows
- High-yield savings (HYSA): liquid, safe, and pays meaningfully more than a standard account — great for emergency funds.
- Certificates of deposit (CDs): lock money up for a set term in exchange for a fixed rate.
- Money market accounts: a middle ground with easy access and competitive yields.
For long-term goals, remember that savings rates may not keep up with inflation — see the inflation calculator — so money you won't need for years is often better invested.
Earn more on your savings
High-yield savings
Compare FDIC-insured online accounts paying some of the highest yields available.
Compare rates →Frequently asked questions
Is savings interest taxable?
In most places, yes — interest is typically treated as taxable income. This calculator shows pre-tax growth.
Will the APY stay the same?
Savings APYs are variable and change with market rates. CDs lock a fixed rate for their term. Treat long projections as estimates.