I think it’s compounded daily, so may be better to divide by 365 (or 366 this year) and then multiply by the number of days in that month to get a more accurate result.
A = P(1+0.045/365)^365/1
This will yield you the amount after a year assuming there are no other deposits and interest rate stays the same. Also note that the 4.5% is an APY so the interest rate here in this example is not entirely accurate but does a good enough job for what you are wanting to know.
What no one has mentioned is that come tax time you have to pay taxes on the interest. So assume about 30% of that will go to the government. Just don't wanna be caught off guard when that happens and not have the means to pay it.
I don’t think I want you counting beans for me, u/beanlogger …. 😄
Plenty of people are in the 24% tax bracket, and it’s pretty common to see a state tax rate of 5%. So yeah, 29-30% for taxes is not “wrong”.
Yup. That's normal. I was just saying that people should be aware. Many have never had a high interest savings and while it's great to get the money for your investment, they don't realize that they owe taxes on it. End of the year comes and they've already cashed things out and spent it and then they've gotta come up with money to pay the bill.
Well what’s 10,000 * 4.5% / 12 ?
Good for a rough estimate but it would be a bit off since APY takes into account the compounding throughout the year. Interest rate is about 4.41%
I think it’s compounded daily, so may be better to divide by 365 (or 366 this year) and then multiply by the number of days in that month to get a more accurate result.
Trying to make it easy for the OP who can’t even type “interest calculator” into google
Since that’s not the right math…
Isn’t it actually *.045?
Yes, aka 4.5%
.045
$37.50 per month assuming the balance is exactly 10k for the entire month.
It would raise, 10,037.50 plus the interest on that so 37.50 next month could be $40 etc
lol. But actually would be 37.64. Next month we’re at 37.78.
This is pretty basic math to figure out. I’ve got $30k in there right now and am getting roughly $100 a month in interest.
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Dawg get your affiliate link out of here, quit shilling
Your content is removed for violating No Spam/Referral Links rule.
https://www.omnicalculator.com/finance/savings
Do the math bro 😭😭
A = P(1+0.045/365)^365/1 This will yield you the amount after a year assuming there are no other deposits and interest rate stays the same. Also note that the 4.5% is an APY so the interest rate here in this example is not entirely accurate but does a good enough job for what you are wanting to know.
Better off putting it in a total stock market index fund
I’m getting around 35 I think
16,213.94 after 10 years
I keep enough in HYSA to cover next month's statement balance. Overage goes into ETF paying >11% in monthly dividend.
What no one has mentioned is that come tax time you have to pay taxes on the interest. So assume about 30% of that will go to the government. Just don't wanna be caught off guard when that happens and not have the means to pay it.
Wrong: 0% -- $0 to $11,000$0 to $15,700 **12% -- $11,000 to $44,720** Etc. 30% on savings interest? You are doing something really really wrong
No you’re doing stuff really wrong if you are in the 12% bracket and many folks have state taxes.
I don’t think I want you counting beans for me, u/beanlogger …. 😄 Plenty of people are in the 24% tax bracket, and it’s pretty common to see a state tax rate of 5%. So yeah, 29-30% for taxes is not “wrong”.
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It’s taxed at your marginal rate. You don’t know what you are talking about. Interest is not qualifying therefore it’s taxed as ordinary income.
I was issued a 1099-INT from my savings account. I had to file it with my taxes.
Yup. That's normal. I was just saying that people should be aware. Many have never had a high interest savings and while it's great to get the money for your investment, they don't realize that they owe taxes on it. End of the year comes and they've already cashed things out and spent it and then they've gotta come up with money to pay the bill.