High-Yield Savings Account Return Calculator





Formula

The formula to calculate the annual return on a high-yield savings account is:

\[ R = I \times \frac{APY}{100} \]

Where:

What is a High-Yield Savings Account?

A High-Yield Savings Account is a type of savings account that offers a higher interest rate compared to traditional savings accounts. It is important because it allows individuals to earn more money on their savings over time, helping them to reach their financial goals faster.

Example Calculation

Let's assume the following values:

Step 1: Convert the APY to a decimal:

\[ APY = \frac{2.5}{100} = 0.025 \]

Step 2: Calculate the annual return:

\[ R = 10,000 \times 0.025 = 250 \]

Therefore, the total annual return is $250.