Savings Calculator

Q: How much will my savings grow in 5 years?

It depends on deposits and rate. Starting with $1,000 and adding $300 per month at a 4.5% APY high-yield rate grows to about $21,300 in 5 years — $19,000 of deposits plus roughly $2,300 of interest.

Q: What is APY and how is it different from the interest rate?

APY (annual percentage yield) is the rate after compounding is included, which makes it the number to compare between banks. A 4.4% rate compounded daily is about a 4.5% APY.

Q: Where should I keep my savings?

For money you may need within a few years, high-yield savings accounts and money market accounts offer FDIC insurance and instant access; CDs pay slightly more for locking the money up. Longer-horizon money is usually better invested.

Project your savings account balance from a starting amount, monthly deposits, and your APY — with the interest broken out so you can see your money working.

Projected balance

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Total deposits

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Interest earned

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Monthly interest at end

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Year	Deposits to date	Interest to date	Balance

How the projection works

Each month, your balance earns one month of interest at your APY's equivalent monthly rate, then your deposit is added:

Monthly rate = (1 + APY)^1/12 − 1
Balance_next = Balance × (1 + monthly rate) + Deposit

Worked example

Start $1,000, deposit $300/mo at 4.5% APY for 5 years:

Deposits: $19,000 · Interest: ≈ $2,290 · Final balance: ≈ $21,290

Making your savings work harder

Three practical upgrades, in order of impact. Rate: the national-average savings account pays under 0.5% APY while high-yield accounts pay several points more — on the example above, that difference alone is worth about $2,000 over 5 years. Automation: a transfer on payday makes the deposit happen before spending can claim it. Purpose: give the account a job — an emergency fund target or a specific savings goal — because named money is spent less. For funds you won't touch for years, compare a CD ladder or, on long horizons, investing.

Frequently asked questions

How much will my savings grow in 5 years?

$1,000 + $300/mo at 4.5% APY ≈ $21,300 after 5 years ($19,000 deposits, ~$2,300 interest).

What is APY and how is it different from the interest rate?

APY includes compounding — it's the true annual yield and the number to compare between banks.

Where should I keep my savings?

Near-term money: high-yield savings or money market (FDIC-insured, liquid); CDs for a bit more yield; invest longer-horizon money.

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Note: Assumes a constant APY; bank rates change with the market. Not financial advice. Last reviewed: July 2026.