High-Yield Savings APY Comparator

The same deposit is compounded annually at two different APYs over the same number of years: ending balance = principal x (1 + APY) ^ years for each account. Defaults: $10,000 at 4.5% vs 4.0% over 3 years ends at $11,411.66 for Account A versus $11,248.64 for Account B, a $163.02 gap in A's favor.

Because it compounds. A 0.5-point APY gap on $10,000 over 3 years is only $163, but the same gap on a larger balance or over a longer horizon grows much faster since interest is earned on interest.

No. Many high-yield accounts offer an introductory rate that steps down, or a higher rate only up to a balance cap. This page assumes one flat APY for the full term on each account -- adjust the APY manually if your real offer changes over time.

This uses annual compounding on the APY you enter. Since APY (unlike APR) is already the effective annual rate after compounding, using it directly for each full year gives the same ending balance regardless of whether the bank itself compounds daily or monthly.