What does my savings account really earn?

Banks quote a nominal rate, but interest paid monthly starts earning interest of its own, so what you actually collect over a year is higher. That figure is the APY, and it is the only number worth comparing between accounts — two banks can advertise the same rate and pay different amounts.

The quoted yield

SAVING

Nominal annual rate

The headline rate, before compounding. If the bank only shows an APY, it has already done this sum for you.

Compounding frequency

Deposit

Years held

yrs

Inflation

Used only to show what the balance buys in today's money. Set it to 0 to see the nominal figure alone.

What you actually earn

APY

🧮

Enter a nominal savings rate to see its true yield.

Save or send these numbersEmail

All four happen in your browser. Your figures are not sent anywhere — the email opens in your own mail app, already filled in.

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Why APY is the number, and what inflation does to itA written guide to the rules behind this calculator →

For educational purposes only. Banks must disclose an APY under the Truth in Savings Act, so compare that figure rather than the nominal rate. Advertised rates on savings accounts are variable and can change without notice, and introductory rates often fall after a promotional period.