Savings calculator
See how a savings or high-yield savings account grows with compound interest. Enter a starting deposit, an optional monthly deposit, the APY, and how many years you plan to save. We prefill the FDIC's latest national average savings rate so you can see how much more a higher-yield account would earn.
Year-by-year breakdown
| Year | Deposited | Interest | Balance |
|---|
How much interest does $10,000 earn in savings?
Interest earned on a one-time $10,000 deposit, before taxes, assuming the rate stays the same and interest stays in the account. Figures are calculated with the formula below, not quotes from any bank.
| APY | 1 year | 5 years | 10 years | 20 years |
|---|---|---|---|---|
| 0.38% (FDIC national savings average) | $38.00 | $191.45 | $386.56 | $788.07 |
| 1.00% | $100.00 | $510.10 | $1,046.22 | $2,201.90 |
| 2.00% | $200.00 | $1,040.81 | $2,189.94 | $4,859.47 |
| 3.00% | $300.00 | $1,592.74 | $3,439.16 | $8,061.11 |
| 4.00% | $400.00 | $2,166.53 | $4,802.44 | $11,911.23 |
| 5.00% | $500.00 | $2,762.82 | $6,288.95 | $16,532.98 |
Saving $200 a month for 10 years
What happens if you start at $0 and deposit $200 at the end of every month for 10 years (120 deposits).
| APY | Total deposited | Interest earned | Balance after 10 years |
|---|---|---|---|
| 0.38% (FDIC national savings average) | $24,000.00 | $457.08 | $24,457.08 |
| 1.00% | $24,000.00 | $1,224.19 | $25,224.19 |
| 2.00% | $24,000.00 | $2,519.36 | $26,519.36 |
| 3.00% | $24,000.00 | $3,889.60 | $27,889.60 |
| 4.00% | $24,000.00 | $5,339.18 | $29,339.18 |
| 5.00% | $24,000.00 | $6,872.63 | $30,872.63 |
The savings growth formula
With a quoted APY, convert it to a monthly rate first: i = (1 + APY)1/12 − 1. After m months, your balance is:
Balance = Deposit × (1 + i)m + Monthly × ((1 + i)m − 1) ÷ i
The first part is your starting deposit growing on its own; the second is the future value of your monthly deposits, each made at the end of the month. If you only know the nominal interest rate, convert it to APY with APY = (1 + rate ÷ n)n − 1, where n is the number of compounding periods per year. Federal Truth in Savings rules (Regulation DD) require banks to disclose APY so accounts can be compared fairly.
How your rate compares to the national average
The FDIC's national savings rate is a simple average of rates offered by insured banks and branches, and it is pulled down by large banks that pay very little. The latest average is 0.38% (as of 2026-10-01), compared with 1.76% for a 12-month CD (as of 2026-10-01, FRED NDR12MCD). High-yield savings accounts at online banks and credit unions often pay several times the average. See five years of history on our national rates charts, or compare a fixed-rate CD with our CD calculator and Best CD Rates list.
Before you choose a savings account
- Variable rates. Savings rates can change at any time, so long-term projections assume today's rate continues. A CD locks in a rate for a fixed term.
- Withdrawal limits. The Federal Reserve removed Regulation D's six-per-month limit on convenient savings withdrawals in April 2020, but some banks still cap transfers or charge fees. Check the account agreement.
- Insurance limits. Keep each bank's total under $250,000 per ownership category for full FDIC coverage (or NCUA coverage at credit unions).
- Taxes. Interest is generally taxable each year it is credited (IRS Topic 403).
- Find a bank. Use our bank finder to look up any FDIC-insured bank's branches and financial data.
Frequently asked questions
How is savings account interest calculated?
Banks quote an annual percentage yield (APY), which already includes compounding. With no deposits or withdrawals, your balance after t years is the starting deposit times (1 + APY) raised to the power t. This calculator converts the APY to an equivalent monthly rate, (1 + APY)^(1/12) − 1, and adds any monthly deposits at the end of each month.
What is the national average savings account rate?
The FDIC publishes a monthly national average rate for savings accounts, a simple average of rates offered by insured banks and branches. This calculator loads the latest figure from FRED (series SNDR) and shows the date it applies to. Because the average includes many large banks that pay very little, high-yield savings accounts at online banks and credit unions often pay much more.
What is the difference between APY and interest rate?
The interest rate (the nominal rate) does not include compounding; APY does. Federal Truth in Savings rules (Regulation DD) require banks to disclose APY so you can compare accounts. A 4.00% rate compounded daily works out to about 4.08% APY.
Can my savings rate change?
Yes. Most savings and money market accounts pay a variable rate that the bank can raise or lower at any time, so long-term results here are estimates that assume today's rate holds. A CD locks in a fixed rate for its term; try our CD calculator to compare.
Is savings account interest taxable?
Generally yes. Interest is usually taxable as ordinary income in the year it is credited to your account, and banks report it on Form 1099-INT. See IRS Topic No. 403 for details. This calculator shows pre-tax earnings.
Are savings accounts FDIC-insured?
Savings and money market deposit accounts at FDIC-insured banks are covered up to $250,000 per depositor, per insured bank, for each account ownership category. Credit union savings are insured by the NCUA on the same terms.
Sources: FDIC National Rates and Rate Caps, retrieved via FRED®, Federal Reserve Bank of St. Louis; 12 CFR Part 1030 (Regulation DD); Federal Reserve Board press release, April 24, 2020; IRS Topic No. 403. Results are estimates for illustration and exclude taxes and fees. Not financial advice.