Savings Interest Calculator: See How Much Your Money Can Grow
Enter your savings amount and compare earnings at real bank rates. See the dollar difference between a 0.01% traditional bank and a 4.25% online bank.
Calculator Inputs
Bank A: Chase Savings
0.01% APY
$22,008
after 5 years
Bank B: Discover
4.25% APY
$25,658
after 5 years
By choosing Discover over Chase Savings, you earn
$3,651 more
in interest over 5 years on the same deposits
Year-by-Year Breakdown
| Year | Chase Savings Balance | Discover Balance | Difference |
|---|---|---|---|
| 1 | $12,401 | $12,875 | $474 |
| 2 | $14,802 | $15,873 | $1,070 |
| 3 | $17,204 | $18,999 | $1,795 |
| 4 | $19,606 | $22,259 | $2,653 |
| 5 | $22,008 | $25,658 | $3,651 |
Common Comparisons
Quick reference: annual interest on $10,000 at different banks (no additional contributions).
Chase
0.01% APY
$1
per year on $10,000
Ally
4.00% APY
$400
per year on $10,000
Capital One 360
4.10% APY
$410
per year on $10,000
Discover
4.25% APY
$425
per year on $10,000
How Compounding Works
Daily compounding means the bank calculates interest every day based on your current balance (including previously earned interest). This creates a snowball effect where your earnings accelerate over time.
Example: $10,000 at 4.25% APY with daily compounding earns $11.64 in the first day. On day two, you earn interest on $10,011.64 instead of the original $10,000. After a full year, you have $10,434.03 instead of the $10,425 you would get with simple interest.
Monthly compounding calculates interest once per month instead of daily. The difference is small (a few dollars per year on typical balances), but daily compounding always earns slightly more. Most online savings accounts use daily compounding.
The real power of compounding shows over longer periods and with regular contributions. A $10,000 deposit with $200/month added at 4.25% APY grows to approximately $40,800 after 5 years, of which about $4,800 is interest earned.