Savings Income Calculator — How Much Interest Will You Earn?
Your savings are only working as hard as your interest rate. These tables show exactly how much you’ll earn at every major rate in 2026 — from big-bank rates to the best online accounts.
Annual Interest by Balance and APY
| Balance | 0.01% (Big Bank) | 0.38% (Natl Avg, Aug 2026) | 4.00% (Illustrative) | 4.50% (Illustrative Top HYSA) | 4.75% (Illustrative Best CD) |
|---|---|---|---|---|---|
| $1,000 | $0.10 | $3.80 | $40 | $45 | $47.50 |
| $5,000 | $0.50 | $19.00 | $200 | $225 | $237.50 |
| $10,000 | $1 | $38 | $400 | $450 | $475 |
| $25,000 | $2.50 | $95.00 | $1,000 | $1,125 | $1,187.50 |
| $50,000 | $5 | $190.00 | $2,000 | $2,250 | $2,375 |
| $100,000 | $10 | $380 | $4,000 | $4,500 | $4,750 |
| $250,000 | $25 | $950.00 | $10,000 | $11,250 | $11,875 |
The 0.01% and 0.38% columns are verified benchmark figures (big-bank standard rate; FDIC national average as of August 2026). The 4.00%, 4.50%, and 4.75% columns are illustrative examples of competitive online rates, not live quotes — confirm current rates directly with a specific bank before relying on them.
Monthly Interest by Balance and APY
| Balance | 0.38% (Natl Avg, Aug 2026) | 4.50% (Illustrative Top HYSA) | 4.75% (Illustrative Best CD) |
|---|---|---|---|
| $5,000 | $1.58 | $18.75 | $19.79 |
| $10,000 | $3.17 | $37.50 | $39.58 |
| $25,000 | $7.92 | $93.75 | $98.96 |
| $50,000 | $15.83 | $187.50 | $197.92 |
| $100,000 | $31.67 | $375 | $395.83 |
The Real Cost of a Low-Rate Account
The annual difference between the FDIC national average (0.38% as of August 2026) and an illustrative top HYSA rate (4.50%, confirm current rate before relying on this):
| Balance | Annual Loss from Low Rate (illustrative, 4.50% vs. 0.38% national avg) |
|---|---|
| $10,000 | $412/year |
| $25,000 | $1,030/year |
| $50,000 | $2,060/year |
| $100,000 | $4,120/year |
This illustrates the order of magnitude you could be leaving on the table by keeping savings at the national-average rate rather than a competitive online rate — confirm current rates before acting on these figures, since they move with the broader interest-rate environment. Both account types are FDIC insured to the same limits, so the rate gap is not compensation for additional risk.
How to Calculate Your Savings Interest
Simple formula: Balance x APY = Annual interest
Example: You have $32,000 saved at 4.50% APY. $32,000 x 0.045 = $1,440/year = $120/month
With compounding: Most savings accounts compound daily — meaning each day’s interest is added to your balance, and the next day’s interest is calculated on the (slightly larger) balance. The APY figure already accounts for daily compounding, so using the APY in the simple formula gives you an accurate annual estimate.
After 3 years at 4.50% APY (compounding): $32,000 x (1 + 0.045)^3 = $36,517.32 (vs $36,320 with simple, non-compounding interest) — assumes the rate stays constant for all 3 years, which is unrealistic since published APYs change over time
Taxes on Savings Interest
Interest income from savings accounts is taxable as ordinary federal income. Example:
- $32,000 at 4.50% APY = $1,440 in interest income
- In the 22% federal tax bracket: $317 in federal taxes
- After-tax interest: $1,123 ($93.58/month)
Tax mitigation options:
- Roth IRA savings grow tax-free — but limited to $7,000/year contribution
- Treasury bills are state-tax exempt
- I Bonds defer federal tax until redemption (up to 30 years)
Related Guides
- Average Rates for Deposit Accounts — current rate tables
- How Much $100,000 Could Earn in One Year — large balance guide
- How Much Interest on $100, $1K, or $10K? — small balance guide
- Banking Basics Hub — complete banking guide
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy