A High Yield Savings Account (HYSA) is a type of savings account that typically pays a significantly higher interest rate than a standard savings account. While traditional brick-and-mortar banks might offer rates as low as 0.01%, HYSAs—often offered by online banks—can offer rates 10 to 50 times higher.
How the HYSA Calculator Works
The growth of your savings in a high-yield account is driven by compound interest. This means you earn interest not only on your initial deposit but also on the interest that accumulates over time. This calculator uses the compound interest formula with regular monthly additions to project your future wealth.
Example Calculation
If you start with an Initial Deposit of 10,000, contribute 200 per month, and have an APY of 4.5% compounded monthly, after 10 years:
Total Contributions: 34,000 (Initial 10k + 24k monthly additions)
Total Interest: Over 10,000 in earned interest
Final Balance: Approximately 44,700+
Key Benefits of a HYSA
1. Higher Earnings: Maximize the power of your emergency fund or short-term savings goals.
2. Liquidity: Unlike a CD (Certificate of Deposit), you can usually withdraw your funds at any time (subject to federal withdrawal limits).
3. Safety: Most HYSAs are FDIC-insured up to $250,000 per depositor, making them extremely low-risk.
function calculateHYSA() {
var initial = parseFloat(document.getElementById('initialDeposit').value);
var monthly = parseFloat(document.getElementById('monthlyDeposit').value);
var apy = parseFloat(document.getElementById('apyRate').value) / 100;
var years = parseFloat(document.getElementById('years').value);
var n = parseInt(document.getElementById('compounding').value);
if (isNaN(initial) || isNaN(apy) || isNaN(years)) {
alert('Please fill in all required fields with valid numbers.');
return;
}
if (isNaN(monthly)) { monthly = 0; }
// Future Value of Initial Principal: P(1 + r/n)^(nt)
var fvPrincipal = initial * Math.pow((1 + apy / n), (n * years));
// Future Value of Monthly Contributions: PMT * [((1 + r/n)^(nt) – 1) / (r/n)]
// Note: This assumes contributions happen at the end of the period.
// Since contribution is monthly, we use r/12.
var rMonthly = apy / 12;
var tMonths = years * 12;
var fvContributions = 0;
if (rMonthly > 0) {
fvContributions = monthly * (Math.pow(1 + rMonthly, tMonths) – 1) / rMonthly;
} else {
fvContributions = monthly * tMonths;
}
var totalBalance = fvPrincipal + fvContributions;
var totalInvested = initial + (monthly * tMonths);
var totalInterest = totalBalance – totalInvested;
document.getElementById('totalBalance').innerText = '$' + totalBalance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalContributions').innerText = '$' + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalInterest').innerText = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('hysaResult').style.display = 'block';
}