Question 1

How much will my CD or high-yield savings earn?

Accepted Answer

Your balance grows by the account's APY (annual percentage yield), which already reflects compounding. A $10,000 deposit at 4.5% APY becomes about $12,462 after five years with no further deposits. Adding monthly contributions increases both the balance and the interest earned. This calculator uses the APY as the true effective yield, so the numbers match what a bank quotes.

Question 2

What's the difference between APY and interest rate?

Accepted Answer

The interest rate is the base rate before compounding; the APY (annual percentage yield) includes the effect of compounding over a year, so it's slightly higher and is the number that reflects what you actually earn. Banks advertise CDs and savings accounts by APY, which is why this calculator uses APY directly.

CD & High-Yield Savings Calculator