Savings rates vary far more between banks than most people assume, and the money is identically insured at all of them. Comparing two accounts side by side is usually the highest-return few minutes available in personal finance.
How it works
Because APY is a regulated, standardised figure, annual interest is simply the balance multiplied by the APY. Enter two accounts and the calculator shows what each earns in a year and which is ahead.
The gap is larger than it looks, because the money is doing nothing different
A percentage point sounds small. On $50,000 it is $500 a year, every year, for a transfer that takes an afternoon and changes nothing else about your situation — same federal insurance, same access, same money. Traditional accounts at large banks frequently pay a small fraction of what online accounts pay, and the difference is not a reward for extra risk. It is the cost of not having compared.
What this does not include
Interest only. It does not account for monthly maintenance fees, minimum balance requirements, or transfer limits, any of which can wipe out a rate advantage — the minimum balance calculator on this site handles that trade directly. Savings rates are also variable, so a leading rate today may not lead next year.
How to use this calculator
- Enter the balance and APY for the account you have now.
- Enter the balance and APY for the account you are considering.
- Compare the annual interest figures. The difference is what switching is worth per year.
Frequently asked questions
Is a higher rate riskier?
Not if the bank is FDIC-insured and you stay within the coverage limits. Online banks often pay more simply because they have no branch network to fund. Confirm the FDIC membership, then treat the rate as the rate.
How often should I compare?
Once or twice a year is usually enough. Rates move with the wider environment, and some banks quietly leave existing customers on older, lower rates while advertising better ones to new ones — worth checking that your own account still pays what you think it does.
Does it matter if I split money across two banks?
It can help, in one specific way: each bank carries its own FDIC coverage limit, so splitting a large balance increases how much is insured. Below the limits it makes no difference to safety, only to the rate you earn.
