Combined APY Calculator

Are you considering an account that offers two APYs? The following can help you calculate the account's true earning power.

When to use a combined APY calculator?

Some institutions offer a large APY for a certain amount and then drastically drop the APY for anything over their capped amount. For example, a bank that offers 3% for a deposit up to $2,000, but drops the rate to 0.01% for any additional funds. Using a combined APY calculator can help depositors understand the true yield on their account.

Can combined APY calculator be used for tiered accounts?

Yes! Some institutions offer tiered accounts. This means that balances earn based on how much is in the account. For example, a bank that offers 0.10% on balances under $1,000, and 0.20% on balances under $5,000. This increased rate is meant to incentivize depositors to hold more in their accounts.

How can knowing the combined APY help a savings strategy?

Knowing the combined APY will summarize what the account is actually earning. It's a metric that can be used to compare accounts.

Why are combined APYs used?

High APYs can be paired with low APYs to lure new depositors or delight current ones. Always read the fine print, so that you understand the deposit rules. They may include:

• a minimum balance you need to maintain

• a time period you have to keep the funds in the account,

• a monthly spend you have to meet,

• a service (like direct deposit) you have to enable, and/or

• a mandatory additional account you have to open