Compound Interest Calculator New York City

Compound Interest Calculator for New York City

Savings accounts and deposits in New York City are priced off the US Federal Reserve System policy rate, which stood at 3.875% at the end of September 2026. National consumer price inflation was 3.74% in September 2026, so a saver earning exactly the policy rate would have a real return of 0.13% a year before tax.

Facts that change the answer

• US Federal Reserve System policy rate: 3.875% (September 2026, BIS series)
• Annual CPI inflation: 3.74% (September 2026)
• Real return at the policy rate: 0.13% per year (computed as (1 + 3.875%) / (1 + 3.74%) minus 1)
• Policy rate at each December: 2016 0.625%, 2017 1.375%, 2018 2.375%, 2019 1.625%, 2020 0.125%, 2021 0.125%, 2022 4.375%, 2023 5.375%, 2024 4.375%, 2025 3.625%
• Policy rate moves since January 2020 (month-end data): March 2020 1.625% to 0.125%; March 2022 0.125% to 0.375%; May 2022 0.375% to 0.875%; June 2022 0.875% to 1.625%; July 2022 1.625% to 2.375%; September 2022 2.375% to 3.125%; November 2022 3.125% to 3.875%; December 2022 3.875% to 4.375%; February 2023 4.375% to 4.625%; March 2023 4.625% to 4.875%; May 2023 4.875% to 5.125%; July 2023 5.125% to 5.375%; September 2024 5.375% to 4.875%; November 2024 4.875% to 4.625%; December 2024 4.625% to 4.375%; September 2025 4.375% to 4.125%; October 2025 4.125% to 3.875%; December 2025 3.875% to 3.625%; September 2026 3.625% to 3.875%
• In 3 of the last 10 years the December policy rate was above that year's average inflation

Worked example for New York City

Start with USD 10,000, add USD 100 a month and use 3.875% compounded monthly. After 10 years you would have USD 29,352 from USD 22,000 of deposits; after 20 years USD 57,846 from USD 34,000. These amounts in US dollar are only examples; real deposit rates offered by banks in New York City are usually below or above the policy rate depending on the term and the bank.

To see what that balance is worth in today's money, take inflation into account: at 3.74% a year, USD 29,352 in ten years has the buying power of about USD 20,336 now. Recent history for New York City's currency: 2020: 0.125% rate vs 1.2% inflation, 2021: 0.125% rate vs 4.7% inflation, 2022: 4.375% rate vs 8.0% inflation, 2023: 5.375% rate vs 4.1% inflation, 2024: 4.375% rate vs 2.9% inflation, 2025: 3.625% rate vs 2.6% inflation.

If you hold the money in a fixed deposit, the rate you lock in matters more than the compounding frequency. On USD 10,000 over 10 years at 3.875%, switching from yearly to monthly compounding adds only USD 98, while a rate 1 point higher adds USD 1,543.

Sources: BIS central bank policy rates · BIS consumer price statistics. Checked 5 November 2026. For how the maths works, see the Compound Interest Calculator guide.