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About

Inflation is the silent wealth destroyer. If your money is sitting in a traditional checking or savings account earning 0.01% or 0.40%, you are effectively losing purchasing power every single day. High-Yield Savings Accounts (HYSAs) are FDIC-insured accounts that typically pay 10 to 15 times the national average interest rate.

This calculator is designed to quantify the "Opportunity Cost"—the actual money you are forfeiting by not switching banks. By comparing a standard rate against a competitive HYSA rate, you can visualize the tangible benefits of moving your emergency fund or idle cash to a higher-performing vehicle. It’s not just about pennies; over a few years, the difference often amounts to a free vacation or a significant appliance upgrade.

HYSA interest rates opportunity cost banking

Formulas

The tool calculates Simple Interest for comparison (approximating APY effects for short term clarity). The Opportunity Cost is the difference between the two interest outcomes.

IHYSA = P × rhigh × t
Ilow = P × rlow × t
OppCost = IHYSA Ilow

Reference Data

Bank TypeTypical APYEarnings on $10k (1 Yr)Earnings on $50k (1 Yr)
Traditional Big Bank0.01%$1.00$5.00
Average Savings0.46%$46.00$230.00
Money Market Fund4.50%$450.00$2,250.00
Competitive HYSA5.00%$500.00$2,500.00
Treasury Bills (ST)5.30%$530.00$2,650.00
Difference (HYSA - Trad)-+$499.00+$2,495.00

Frequently Asked Questions

Yes, as long as the bank is FDIC-insured (or NCUA-insured for credit unions), your deposits are protected up to $250,000 per depositor, per institution, just like a regular bank.
Big traditional banks have massive overhead costs (branches, ATMs, staff) and plenty of existing deposits, so they don't need to compete aggressively for your cash. Online banks (HYSA providers) have lower overhead and pass the savings to you.
No. Unlike stocks or crypto, your principal is not at risk of market fluctuation. The only variable is the interest rate, which can go up or down based on the Federal Reserve's actions.
HYSA rates are variable. They can change at any time, but they generally track the Federal Funds Rate. If the Fed raises rates, HYSAs usually pay more; if the Fed cuts rates, HYSA yields drop.