Savings Versus Checking Yield CalculatorFree online financial calculator — instant results, no sign-up
Compare account balances using stated APYs and annual fees deducted at each year end.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Savings Versus Checking Yield Calculator
The Savings Versus Checking Yield Calculator compares how the same opening balance grows in savings and checking accounts using each account’s stated APY and annual fee. It deducts fees at each year end and reports both ending balances and the savings account’s dollar advantage over the selected number of years.
- Opening balance ($)
- The starting amount placed in each account, in dollars, defaults to $15,000.
- Savings APY (%)
- The savings account’s annual percentage yield, entered as a percentage, defaults to 4%.
- Checking APY (%)
- The checking account’s annual percentage yield, entered as a percentage, defaults to 0.05%.
- Savings annual fee ($)
- The fee deducted from the savings account at each year end, in dollars, defaults to $0.
- Checking annual fee ($)
- The fee deducted from the checking account at each year end, in dollars, defaults to $60.
- Years (years)
- The comparison period, measured in whole years, defaults to 3 years.
Formula and method
Let r_s = p_s / 100 and r_c = p_c / 100. Start with S_0 = C_0 = P. For each year t = 1, …, n: S_t = S_(t−1) × (1 + r_s) − F_s and C_t = C_(t−1) × (1 + r_c) − F_c. Savings advantage: A = S_n − C_n.
- POpening balance in dollars, used separately for both accounts.
- p_s, p_cSavings and checking APYs entered as percentages.
- r_s, r_cSavings and checking annual yields expressed as decimals.
- F_s, F_cSavings and checking annual fees in dollars.
- nNumber of whole years in the comparison.
- tThe year currently being calculated.
- S_t, C_tSavings and checking balances after the fee is deducted at the end of year t.
- ASavings ending balance minus checking ending balance, in dollars.
Convert both APYs from percentages to decimals. For each account, apply one year of growth to the balance, then subtract that account’s annual fee. Carry the resulting balance into the next year and repeat for the selected period, retaining precision until final amounts are rounded to cents. With the default inputs, the savings calculation is 15000 × (1.04)^3 = $16,872.96. Repeatedly multiplying the checking balance by 1.0005 and then subtracting $60 for 3 years produces $14,842.42. The savings advantage is $2,030.54.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Opening balance15000 $
- Savings APY4 %
- Checking APY0.05 %
- Savings annual fee0 $
- Checking annual fee60 $
- Years3 years
Results
- Savings ending balance$16,872.96
- Checking ending balance$14,842.42
- Savings advantage$2,030.54
How to use the Savings Versus Checking Yield Calculator
- 1Enter the opening balance to use as the starting amount in each account.
- 2Enter the savings and checking APYs as percentages, using advertised APYs rather than nominal interest rates.
- 3Enter each account’s annual fee in dollars, using $0 when no fee applies.
- 4Choose the number of whole years to compare and run the calculation.
- 5Compare the two ending balances and the savings advantage, then adjust APYs or fees to explore alternatives.
Reading your result
Savings ending balance is the projected savings balance after all annual growth and year-end savings fees; the default result is $16,872.96. Checking ending balance is the corresponding checking balance after growth and year-end checking fees; the default result is $14,842.42. Savings advantage is the difference between those balances, not the savings account’s interest alone; the default result is $2,030.54. A positive advantage favors savings, a negative advantage favors checking, and zero means the projected balances are equal.
Limitations
The model assumes constant APYs and fixed annual fees, with no deposits or withdrawals other than those fees. APY already incorporates compounding, so the model applies it as an effective annual yield rather than adding separate monthly or daily compounding. Actual results may differ because of changing rates, balance tiers, fee waivers, monthly fee deductions, transaction charges, or bank rounding practices. Results are before taxes and inflation and do not value checking features such as payment access. The recurrence assumes whole years and does not model overdraft rules or account closure if fees exhaust a balance.
Common questions
Does this comparison assume I split the opening balance between savings and checking?+
No. It compares two alternatives, each starting with the full opening balance. With the defaults, each projection starts at $15,000.
Why does the default checking balance fall even though its APY is positive?+
At 0.05% APY, the first year’s interest on $15,000 is $7.50, which is less than the $60 annual fee. Fees continue to exceed interest, leaving a checking ending balance of $14,842.42 after 3 years.
Why are fees subtracted after applying the APY?+
This calculator specifically assumes year-end fee deductions. Each fee reduces the balance available to earn interest in subsequent years; fees charged monthly or at the start of a year would produce different results.
Is the default $2,030.54 savings advantage entirely additional interest?+
No. It reflects both the higher savings APY and the difference in fees. The comparison uses a 4% savings APY with no annual fee versus a 0.05% checking APY with a $60 annual fee.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.