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High-Yield Savings Account (HYSA) Calculator

Project HYSA growth at today's top APYs (~4.0-4.5%), compare to traditional savings, and see after-tax interest with federal and state tax rates.

FINANCE

Project growth of a High-Yield Savings Account at todays top APYs (around 4.0 to 4.5%), compare to a traditional savings account at the FDIC national average, and see your after-tax interest using your federal and state tax rates.

Inputs: starting balance, monthly contribution, HYSA APY, time horizon, traditional savings APY for comparison, federal bracket, and state tax rate. Outputs include final balance, total interest, after-tax interest, the dollar gap vs traditional savings, and a year-by-year breakdown of balance and interest earned.

Disclaimer: APY is variable and can change at any time without notice. Always verify the current rate, FDIC insurance status, and account terms with the bank before depositing.

High-Yield Savings Account (HYSA) Calculator

Project HYSA growth at today's top APYs, compare to a traditional savings account, and see your after-tax interest based on federal and state tax rates.

Top US online banks offer ~4.0% to 4.5% APY in May 2026.
US national average is ~0.40% APY.
Interest is taxed as ordinary income. Pick your marginal bracket.
0% for FL, TX, NV, SD, WA, WY, AK, TN, NH. ~5-13% elsewhere.
Projected HYSA Balance
$45,723
Total Contributed$40,000
Total Interest Earned$5,723
After-Tax Interest$4,178
Extra Earned vs Traditional Savings+$5,224

Year-by-Year Breakdown

YearBalanceInterest This Year
1$16,551.64$551.64
2$23,387.22$835.58
3$30,519.03$1,131.81
4$37,959.92$1,440.89
5$45,723.29$1,763.36

What is a High-Yield Savings Account?

A High-Yield Savings Account (HYSA) is an FDIC-insured deposit account that pays significantly higher interest than a traditional brick-and-mortar savings account. As of May 2026, the top HYSAs (Ally, Marcus, Discover, Wealthfront, SoFi, CIT) pay 4.0-4.5% APY while the FDIC national average for traditional savings is just 0.40% APY - about 10x lower.

Most HYSAs compound daily and credit interest monthly. There are usually no minimum balances, no monthly fees, and full FDIC insurance up to $250,000 per depositor per bank. Funds remain fully liquid - unlike a CD, you can withdraw anytime.

Interest earned in an HYSA is taxable as ordinary income at your marginal federal rate (plus state, if applicable). For tax-advantaged growth on long-term money, consider an HSA, Roth IRA, or 401(k) instead. HYSAs work best for your emergency fund and short-term goals (1-3 years out).

APY is variable and can change at any time without notice. Past returns do not guarantee future performance. Always check the current rate, FDIC insurance status, and account terms with the bank before depositing.

Frequently Asked Questions

What is a High-Yield Savings Account?
A High-Yield Savings Account (HYSA) is an FDIC-insured deposit account that pays significantly higher interest than a traditional brick-and-mortar savings account. As of May 2026, top US HYSAs (Ally, Marcus, Discover, SoFi, Wealthfront, CIT) pay 4.0 to 4.5% APY versus the FDIC national average of about 0.40% for traditional savings - roughly 10x more.
Do I have to pay taxes on my HYSA interest?
Yes. Interest earned in your HYSA is taxed as ordinary income at your marginal federal rate, plus state tax if applicable. Your bank sends a 1099-INT in January for any account that earned $10 or more in interest. For tax-free growth on long-term money, consider a Roth IRA or HSA instead of a regular HYSA.
Is my money safe in an HYSA?
Very safe. HYSAs at FDIC-insured banks are protected up to $250,000 per depositor per bank for each account ownership category. Even if the bank fails, the FDIC covers your money. Online HYSAs are no less safe than traditional banks - they hold the same federal insurance.
Should I choose a CD or an HYSA?
HYSA: variable rate, fully liquid, ideal for your emergency fund and short-term savings. CD: fixed rate, locked for a term (3 months to 5 years), early withdrawal incurs a penalty. CDs win when you do not need the money soon and rates are at a peak (you lock in). HYSAs win when rates are rising or you might need quick access.