Results update as you type. Use the APY your bank shows today.
1
Your savings
$
$
2
The rates
Use the rate your bank advertises now โ HYSA rates change often.
Many traditional savings accounts pay under 1%. Check your statement.
3
Time & taxes
Your federal bracket. Add your state rate if you want it included.
4
Compare a CD
Optional
Compares your starting balance in a CD vs. the HYSA for the same term (CDs usually don't take monthly deposits).
๐ฌ Rates move. Stay ahead of them.
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How HYSA Interest Is Calculated
The APY (annual percentage yield) already includes compounding, so it tells you what a balance earns over a full year if nothing else changes. $10,000 at 4.00% APY earns about $400 in a year. The same $10,000 at 0.50% earns about $50.
Most banks compound daily and pay interest monthly. This calculator converts the APY to an equivalent monthly rate, adds your deposit at the end of each month, and repeats โ which matches what you'd see on real statements closely.
Three things that change your real result
The rate moves. HYSA rates are variable and usually follow Federal Reserve decisions. Treat any multi-year projection as an estimate.
Interest is taxed. It counts as ordinary income the year it's paid. Banks generally send a Form 1099-INT once you earn $10 or more.
Inflation. If your APY is below inflation, your savings still lose buying power โ just more slowly than in a 0.50% account.
HYSA vs. CD: Which Is Better?
A HYSA keeps your money available any time, but the rate can drop. A CD locks a rate for a set term, but you usually pay a penalty โ often several months of interest โ to take money out early. For an emergency fund, a HYSA is usually the better fit, because the whole point is reaching the money fast. CDs work best for money with a known date, like a down payment you'll make in 12 months.
How much interest will $10,000 earn in a high-yield savings account?
It depends on the APY. At 4.00% APY, $10,000 earns about $400 in one year with no deposits. At a 0.50% APY typical of many traditional savings accounts, the same $10,000 earns about $50. Enter your bank's current APY in the calculator to see your number.
Is interest from a high-yield savings account taxable?
Yes. Savings interest is taxed as ordinary income in the year it is paid, at your regular federal tax rate plus any state income tax. Banks generally send a Form 1099-INT if you earn $10 or more in interest during the year.
Can a high-yield savings account rate change?
Yes. HYSA rates are variable, so the bank can raise or lower the APY at any time โ usually following Federal Reserve rate changes. A CD locks in its rate for the term, but you typically pay a penalty to withdraw early.
Should I keep my emergency fund in a HYSA or a CD?
Usually a HYSA. An emergency fund needs to be available within a day or two without penalties, and a HYSA allows that while still earning interest. CDs can make sense for money you know you will not need until a specific date.