Savings Account Compound Interest Calculator
High-yield savings accounts now pay 4–5% APY. Calculate how much your savings account will grow over 5, 10, or 20 years with compound interest.
Compound Interest
How It Works
At 4.5% APY, $10,000 grows to $12,462 in 5 years with no additional deposits — $2,462 in free money just for leaving it alone.
Compound frequency matters. Monthly compounding at 4.5% APR yields slightly more than annual compounding, but savings account APY already accounts for this.
Adding $200/month for 5 years at 4.5% turns $10k into ~$25,700 — your contributions ($12k) plus $3,700 in interest.
For short-term goals (1–3 years), a HYSA is safer than stocks. For 10+ years, investing beats savings by a wide margin.
Frequently Asked Questions
How often is savings account interest compounded?
Most HYSAs compound daily and credit monthly. Some compound monthly. APY already accounts for compounding, so a 4.5% APY means exactly that — 4.5% over the year.
Is 4.5% a good savings rate?
Yes — it's near the top of current HYSA offerings. Anything above 4% in 2024 is excellent. Rates below 1% (big banks) leave free money on the table.
Should I use savings or invest?
Use savings for money you need within 3 years (emergency fund, down payment). Invest for anything beyond 5 years — stocks historically outperform savings by 5–6%.