HYSA Calculator
High-yield savings accounts pay 10-15x the national average. This calculator projects your balance with monthly deposits and compounding — and shows why the rate matters: $5,000 at 4% APY grows to $6,105 in five years untouched, while the same money at the 0.4% national average grows to just $5,101.
How to use this calculator
- Enter starting balance.
- Enter monthly deposit.
- Enter aPY.
- Enter time period.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The calculator compounds your APY monthly on both the starting balance and each monthly deposit. Because APY already reflects daily compounding, monthly compounding is a close approximation. Interest is credited to the account and compounds on itself, and while banks can change rates at any time, online banks have paid 3.5–5% for years — run your numbers above to see what even half a point of rate is worth over time.
Frequently asked questions
What is a good HYSA rate right now?
Online banks typically pay 3.5-5% APY while the national average is under 0.5%. Rates track the Fed, so they move — lock in an FDIC-insured account with no fees and no minimums.
Is the interest taxable?
Yes — interest over $10 in a year is reported on a 1099-INT and taxed as ordinary income. Unlike T-bills, there is no state-tax exemption.
How is APY different from the interest rate?
APY already includes compounding, so it is the true annual return — a 3.96% rate compounded daily equals a 4.00% APY. Always compare APYs, not raw rates, when shopping accounts and CDs.
How is an HYSA different from a CD?
An HYSA pays variable rates and lets you withdraw anytime; a CD locks a rate for a term but penalizes early withdrawal. Use an HYSA for emergency funds, CDs for money you won't touch.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.