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How does the APY calculator work?

How does this APY calculator work? The APY Calculator is a tool that enables you to calculate the actual interest earned on an investment over a year. Annual interest yield (APY) is a measurement that can be used to check which deposit account is the most profitable or whether an investment will yield a good return.

What is the average APY rate?

The national average savings rate is 0.39% APY, but you can find rates higher than that. Some of the best savings rates come from online banks and are around 2.00% or higher. How is APY calculated? The formula to calculate APY accounts for the interest rate and the number of compounding periods in a year.

What does the interest calculator output?

Our interest calculator will output: the Annual Percentage Yield (APY), the value of your deposit or investment at the end of the period, the interest accrued, and the percentage capital growth. Note that none of these calculation takes into account bank fees, taxes, servicing fees, etc. which may apply.

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