APY (Annual Percentage Yield) is the amount you will receive from an annual interest rate plus compounding of that rate. Use our APY calculator to calculate how much money you’ll make when interest and compounding are taken into account.
APY Calculator
Deposit $10,000 in a regular savings account that earns only 0.46% APY (the national average), your earnings after a year would be $42. Put that same $10,000 in a high-yield savings that earns 4.65% APY for the same amount of time, and you can earn about $469.
This investment will be worth -
| Year | Starting Amount | Annual Contribution | Total Contribution | Interest Earned | Total Interest Earned | End Balance |
CIT Bank High Yield Savings – 4.65% APY
Key Features
- $100 Opening Deposit
- No maintenance or service fees
- CIT Bank doesn’t charge ATM fees and reimburses up to $30 in other U.S. bank’s ATM fees
- FDIC-Insured up to $250,000
Upgrade Premier Savings Account – 5.07% APY
Key Features
- Must have a monthly direct deposit of $1,000 or more.
- No account fees, overdraft fees, or transfer fees.
- FDIC- Insured through Cross River Bank.
Quontic High Yield Savings – 4.50% APY
Key Features
- $100 Opening Deposit
- No monthly maintenance fees
- US-based Customer Service is available by phone or email
- Over 90,000 fee-free locations across the country
- FDIC-Insured up to $250,000
Understanding What APY Means
Annual Percentage Yield (APY) is often used to compare the returns on different investment products, such as savings accounts, money market accounts, certificates of deposit (CDs), and other types of financial instruments. It is important to understand the APY of an investment to accurately compare it with other investment options and to calculate the total amount of interest earned over a given period.
- Annual Percentage Yield (APY) is the total amount of interest earned on an investment over the period of a year, including the effects of compounding interest.
- APY takes into account both the interest rate on an investment and the frequency of compounding, which is the process by which interest is added to the principal amount. Including the effects of compounding interest provides a more accurate measure of the total return on the investment.
For example, suppose you have a savings account with an interest rate of 4.00% per year, and the interest is compounded monthly. In this case, the APY would be slightly higher than 4.00%, because the interest earned each month is added to the principal, which then earns additional interest in subsequent months.
