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HYSA Real-Yield Calculator

Most savings-account rankings simply sort by whoever advertises the highest APY today — and that is the number least likely to last. Banks trim rates quickly once the Fed moves, so a steady 3.90% often ends up paying you more than a 4.50% that drifts down to 3.10% by year-end. This calculator runs that comparison for you. It estimates what a rate actually earns over twelve months, after the cuts, so you are weighing real returns instead of sticker numbers.

HYSA Real-Yield Calculator

The headline APY isn’t what you earn. See what a rate actually pays after the cuts.

Illustrative only. Realized APY assumes Bank A’s rate declines evenly across the year to (headline − drop). Verify current rates directly with each provider before opening an account.

How to read your result

  • Realized avg APY is the rate the high-headline bank effectively pays once it ramps down over the year — not the advertised figure.
  • When the result points to Bank B, the steadier bank comes out ahead even though its headline rate is lower.
  • The dollar difference shown is for a single year. Hold the cash longer and that gap keeps working — for you or against you.

How it works (the assumptions)

  • The model assumes the high-rate bank’s APY declines evenly through the year, from its headline down to (headline minus the drop you entered), so its realized average lands near headline minus half the drop.
  • The comparison bank is treated as steady. Because APY already reflects compounding, we use a straightforward annual calculation.
  • This is a planning estimate, not a promise — real rate paths vary. Confirm the current rate with the bank before moving any money.

Common questions

Why not simply pick the highest APY?

The headline rate is the least durable part of the equation. On $25,000, a 0.30% edge is about $75 a year — but a bank that cuts your rate 1.5% mid-year costs you roughly $375.

What makes a bank “steady”?

One that passes Fed cuts through gradually rather than front-running them, and doesn’t reset to a lower rate once an introductory period ends.

Does this account for compounding?

Yes. APY is already a compounded figure, so the interest shown reflects it.