1. What is This Calculator?

This calculator estimates interest earned on a Bank of America savings account over 18 months. While some accounts may advertise 0% APR, this calculator uses APY (Annual Percentage Yield) to show potential earnings.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Principal \) — Initial deposit amount
• \( APY \) — Annual Percentage Yield (converted to monthly rate by dividing by 12)
• \( 18 \) — Fixed term of 18 months

Note: This assumes simple interest calculation without compounding during the term.

3. Understanding APY

APY vs APR: APY includes compound interest effects while APR does not. For savings accounts, APY gives a more accurate picture of potential earnings.

4. Using the Calculator

Instructions: Enter your principal amount and current APY rate. The term is fixed at 18 months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why 18 months specifically?
A: This matches common promotional periods for savings accounts and CD terms.

Q2: Does Bank of America offer 0% APR savings accounts?
A: Some promotional accounts may have 0% APR but still earn interest via APY - check current offers.

Q3: How often is interest compounded?
A: Most savings accounts compound interest monthly, which is reflected in this calculation.

Q4: Are there fees that would reduce earnings?
A: Some accounts may have monthly maintenance fees that aren't accounted for in this calculator.

Q5: Is this calculator accurate for all Bank of America accounts?
A: This provides an estimate - actual earnings may vary based on specific account terms and rate changes.