What is the difference between advertised APY and True Effective APY?

Banks often advertise high teaser rates (e.g. 5.5% APY) that only last 3 months, cap high rates at low balances (e.g. first $1,000 only), or charge monthly fees ($12/mo) that wipe out yield. True APY calculates your actual take-home return across 12 months.

How much interest do I lose leaving money in a standard checking account?

Standard big-bank checking accounts earn 0.01% APY ($1/year on $10,000). Moving $10,000 into a 5.0% HYSA earns $500/year, losing $499/year in free passive interest by leaving it in checking.

What is a rolling CD ladder?

A CD ladder divides your savings across staggered maturity terms (e.g., 3-month, 6-month, 9-month, and 12-month CDs). Every 3 months, a CD matures, providing regular liquidity while locking in higher fixed yields.

Are savings account interest earnings taxed?

Yes. Interest earned on high-yield savings accounts and CDs is taxed as ordinary income at your combined federal and state marginal tax bracket.

Does TrueAPY require my bank login or personal financial information?

No. TrueAPY runs 100% locally on your device with zero signup, zero accounts, and zero tracking. Your numbers never leave your browser.

🔒 100% On-Device · No Bank Login or Account Required

TrueAPY — Savings, CD & Fee Reality Calculator

Audit bank headline APYs against teaser rate cliffs, balance caps, monthly maintenance fees, taxes, and inflation to calculate your true take-home yield.

Common Gimmicks:

Deposit Balance

Advertised Headline APY

Teaser Promo Duration

months

Rate After Teaser Promo

High Rate Balance Cap

Monthly Account Fee

Combined Fed + State Tax

Annual Inflation Benchmark

Advertised APY

5.25%

Bank Marketing

True Effective APY
1.69%
After Teasers & Fees

After-Tax APY

1.27%

Take-Home Cash

Real APY (Inflation)

-1.63%

Purchasing Power

Item	12-Month Total
Gross Interest Earned	$168.75
Account Maintenance Fees Paid	-$0.00
Estimated Tax Liability	-$42.19
Net Cash Kept in Pocket	$126.56

The Cost of Keeping Cash in Checking (0.01% APY)

Big banks profit billions on uninvested customer checking deposits. See how much money you lose leaving cash idle.

Checking Account Balance

Current Checking APY

Top HYSA Benchmark APY

1-Year Lost Interest

$748.50

Left On The Table

3-Year Lost Interest

$2,364.38

With Compounding

5-Year Lost Interest

$4,144.20

With Compounding

What 1 Year of Lost Interest ($748) Buys:

🛒 2 months of groceries

⛽ 14 tanks of gas

📺 4.2 years of Netflix

Rolling 4-Rung CD Ladder Optimizer

Split your savings across 3M, 6M, 9M, and 12M certificates of deposit. Every 3 months, a chunk matures and unlocks for immediate liquidity or reinvestment.

Total Ladder Investment

Blended CD APY
4.95%
Across All 4 Rungs

Annual Interest Income

$990.00

Guaranteed Yield

Quarterly Liquidity

$5,000.00

Unlocks Every 90 Days

Rung Term	APY	Principal	Annual Interest	Maturity Cycle

How to Pick a Legitimate High-Yield Savings Account

Ensure FDIC or NCUA Insurance: Your principal is federally backed up to $250,000 per depositor, per insured institution. Avoid crypto or uninsured fintech "yield" schemes.
Reject Accounts with Monthly Maintenance Fees: Top HYSAs charge $0 monthly fees, have $0 minimum balance requirements, and do not charge fee penalties for regular transfers.
Watch for Teaser Expiration Dates: If an APY requires you to open direct deposit or drops by 4.0% after 90 days, your blended annual return will be a fraction of the headline number.