High-Yield Savings Calculator — HYSA Interest Earnings
The gap between a 0.01% mega-bank savings account and a 4%+ high-yield account is not rounding error — on $20,000 it's over $800 a year. Calculate your monthly and annual interest, and what you're losing by not switching.
- Interest earned
- $2,981.75
- Extra vs 0.01% big-bank account
- $2,974.70
Growth by year
| Year | Contributed | Interest earned | Balance |
|---|---|---|---|
| 1 | $2,400.00 | $859.32 | $23,259.32 |
| 2 | $2,400.00 | $992.11 | $26,651.44 |
| 3 | $2,400.00 | $1,130.31 | $30,181.75 |
How this calculator works
- Interest compounds monthly on the growing balance. Online banks pay 8–10× the national average because they skip branch costs — the accounts are FDIC-insured just the same.
Frequently asked questions
Is my money safe in an online bank?
Yes, if the bank is FDIC-insured (or the credit union NCUA-insured) — the $250k guarantee is identical to any branch bank.
Do HYSA rates change?
Yes — they float with the Federal Reserve's rate. When the Fed cuts, APYs fall within weeks; CDs let you lock a rate instead.
Is savings interest taxed?
Interest is ordinary income reported on 1099-INT. At a 22% bracket, a 4% APY nets about 3.1% after federal tax.
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Disclaimer: Results are estimates for educational purposes only and are not tax, legal, or financial advice. Tax rules are simplified (credits, phase-outs, and local taxes may not be modeled). Verify important decisions with the IRS, your state tax authority, or a licensed professional.