Savings Account Calculator
Compare what your money earns in your current bank versus a high-yield savings account, and see exactly what switching is worth. Works in any currency.
Compare Your Savings Growth
Enter your savings plan and the two rates you want to compare.
What APY Actually Means
APY stands for annual percentage yield. Unlike a simple interest rate, APY already accounts for compounding, so it reflects what you'll actually earn in a year, including interest earned on interest. This makes it the number worth comparing when you're shopping for an account, rather than a bank's advertised "interest rate" alone.
How This Calculator Works
This takes your starting balance and monthly deposits, and grows them month by month using each APY, converted to a monthly rate. It then shows you both results side by side, so the gap between a low-rate traditional account and a high-yield account becomes a real number instead of an abstract percentage.
A Quick Example
Say you start with $2,000, add $150 a month, and save for 5 years.
- At a typical traditional bank rate of 0.5% APY: roughly $11,070
- At a high-yield savings rate of 4.5% APY: roughly $12,150
- Difference: roughly $1,080, just from choosing a better account for money that was going to sit there either way
That gap grows the longer you save and the more you deposit. It costs nothing to switch accounts, and the money would have been earning the lower rate for no real benefit.
Why This Gap Exists
Traditional brick-and-mortar banks often pay very little on savings accounts, partly because they have higher overhead costs (branches, staff) and don't need to compete aggressively for deposits. Online-only banks and high-yield accounts have lower overhead and often pay significantly more to attract customers. The money is typically just as protected either way, as long as the account is properly insured.
Common Mistakes People Make
- Leaving an emergency fund in a checking account. Checking accounts usually pay little to nothing; a high-yield savings account keeps the money just as accessible while actually earning something.
- Assuming all savings accounts are roughly the same. The gap between the best and worst available rates is often 5-10 times, not a small difference.
- Not checking if the rate is a temporary promotional rate. Some accounts offer an attractive rate for a few months, then drop it. Check what the standard ongoing rate is.
- Forgetting to verify deposit insurance. Before moving money, confirm the institution is properly insured in your country, exactly as you would with any bank.
Frequently Asked Questions
Yes. The math is currency-neutral. Enter your numbers in your own currency and the results will be in the same unit.
Rates change with broader interest rate conditions, so there's no single fixed number. Compare a few current offers from well-known high-yield accounts before deciding, rather than relying on an old figure.
Not necessarily. As long as the institution is properly licensed and insured in your country, a higher rate doesn't inherently mean higher risk for a standard savings account. Always verify this before opening an account.
A high-yield savings account is a common choice for an emergency fund, since it stays easily accessible while earning meaningfully more than a typical checking or low-rate savings account.
Variable-rate accounts can change their APY at any time, usually in response to broader economic conditions. It's worth checking your rate periodically rather than assuming it stays fixed forever.
Looking for current rates? Read our picks for the best high-yield savings accounts.