Savings Calculator

A high-yield savings account offers significantly higher interest rates than traditional savings accounts — often 4-5% APY — while still being FDIC-insured up to $250,000.

A common guideline is the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment. Aim to save at least 3-6 months of expenses as an emergency fund.

APY (Annual Percentage Yield) accounts for compounding, while APR does not. For savings accounts, APY is more relevant as it shows the actual annual return.

Daily compounding yields slightly more than monthly, which yields more than annual. Most savings accounts and CDs compound daily or monthly.

A Certificate of Deposit (CD) locks your money for a fixed term in exchange for a guaranteed, often higher, interest rate. Savings accounts allow withdrawals anytime but typically offer lower rates.