High-Yield Savings Account Return Calculator

Formula

The formula to calculate the annual return on a high-yield savings account is:

\[ R = I \times \frac{APY}{100} \]

Where:

$ R $ is the total annual return ($)
$ I $ is the invested or saved amount ($)
$ APY $ is the annual return rate of the savings account (%)

What is a High-Yield Savings Account?

A High-Yield Savings Account is a type of savings account that offers a higher interest rate compared to traditional savings accounts. It is important because it allows individuals to earn more money on their savings over time, helping them to reach their financial goals faster.

Example Calculation

Let's assume the following values:

Invested or Saved Amount ($ I $): $10,000
Annual Return Rate ($ APY $): 2.5%

Step 1: Convert the APY to a decimal:

\[ APY = \frac{2.5}{100} = 0.025 \]

Step 2: Calculate the annual return:

\[ R = 10,000 \times 0.025 = 250 \]

Therefore, the total annual return is $250.