How High-Yield Savings Bonus Rates Work
Many online banks and fintech apps advertise a "bonus APY" that's only available when you enroll in recurring direct deposit or maintain a minimum monthly deposit. The standard rate might look competitive on its own, but the bonus tier can be meaningfully higher — sometimes more than double — which adds up fast on a 3-year savings goal.
This calculator compares the two scenarios side by side: what your balance looks like if you only ever earn the standard APY, versus what it looks like if you qualify for the bonus rate the whole time. The difference shows you exactly how much it's worth chasing that direct-deposit requirement. Keep in mind interest on savings accounts is taxable income in the US, so your actual take-home growth will be a bit lower after taxes.
Frequently Asked Questions
Many high-yield savings accounts pay a higher APY if you set up recurring direct deposit or meet a minimum monthly deposit — often well above the standard rate.
3 years is a common horizon for short-term savings goals. Bonus APYs are often promotional, so check your bank's terms since rates can change after an introductory period.
Yes. In the US, interest earned on a savings account is generally taxable income and is reported on Form 1099-INT.