Discover how much interest your bank account generates. Compare daily, monthly, and annual compounding across high-yield savings accounts, CDs, and standard savings.
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Calculates Compound Future Value: FV = P * (1 + r/n)^(n*t), where P is principal deposit, r is annual rate in decimal, n is compounding frequency per year, and t is time in years. Total Interest = FV - P.
Your $10,000 deposit earns $1,438 in risk-free interest simply by resting in a competitive account.
Enter the lump-sum dollar deposit you intend to place into the account.
Input the annual interest rate (APY) offered by the financial institution.
Enter the duration of the deposit in years (e.g. 1 year, 2.5 years, 5 years).
Select compounding frequency (daily or monthly is standard for modern online banks).
Review your total interest earned, final balance, and effective annual yield.
At a 4.5% APY, $10,000 generates approximately $450 in interest per year, or roughly $37.50 every month.
Most modern online banks compound interest daily and credit the accumulated earnings to your account balance at the end of each monthly statement cycle.
Simple interest is earned only on the original principal. Compound interest earns interest on your principal PLUS all previously accumulated interest.
Yes, FDIC-insured banks and NCUA-insured credit unions protect your deposits up to $250,000 per depositor, per institution.
Yes. Bank interest is classified as ordinary taxable income and must be reported on your income tax return.
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