A savings account interest calculator helps people manage their money when trying to build an emergency savings account. Rather than accumulate cash at home, which may be lost or stolen, consider putting your money into an interest-earning account at a trusted financial institution to make a little extra on what you have already saved.
Calculate Savings Rates
Calculating the actual amount of savings you receive over time by choosing a particular bank and/or savings account helps you meet your financial goals. It is important to calculate savings rates in order to have a clear picture of your current situation, rather than wondering whether you are saving enough money.
Although most banks offer interest rates at a small percentage, that little bit adds up over time. If you think making regular deposits into the bank is not worth it, use a calculator to see how much additional money you earn simply by taking a few extra steps every week.
Not all savings accounts are equal, so remember to comparison shop between banks. Even within a particular banks there are different account offers, too. The savings rates may vary, but so do the terms. Use a calculator to help you determine if the terms are worth the additional interest earned.
Try Savings Account Interest Calculators
Many banks and credit unions offer online savings account interest calculators for their financial products. Use your bank's tools to determine your current rate of savings. Otherwise, try out one of the online calculators below:
- CSGNetwork.com Compound Savings Interest Calculator: Enter the initial deposit amount, rate and time on the deposit to calculate both interest earnings and principal amounts.
- Math.com Savings Calculator: Input the initial deposit and a monthly contribution along with the yield and years to use this savings calculator.
- Bankaholic Savings Calculator: Not only does this calculator give you a visual graph to see your savings interest grow, it also offers several options for compounding the interest, including daily, monthly, quarterly and annually.
- How Much Will My Savings Be Worth?: Bank of America's tool allows users to see what their savings and interest will be worth in the future by including federal and state tax rates, plus the rate of inflation, in their calculation.
- Bankrate.com Calculators: The Compound Interest Calculator automatically generates a graph that compares the difference in total amount saved and annual percentage yield for yearly, quarterly, monthly and daily compounded interest. Try the Savings Goal Calculator to see how long it will potentially take to reach your savings goals.
- Simple Interest Calculator: Although few banks offer simple interest on their savings accounts, if you find one that does, use the simple calculator offered at WebMath to see how your money will grow over time.
Savings Calculator Tips
Finding and using a savings account interest calculator is just the beginning of finding the right account for your money. To get the most out of using a savings account and calculator, follow these tips:
- Compare local banks and their savings products before choosing one.
- Ask whether you qualify for free checking if you sign up for a savings account within that bank.
- Make sure the bank or credit union is FDIC insured so that your money is safe.
If you all ready have a large, easily accessed savings account set up, you may not want to open another for additional money. Instead, look ahead to retirement or investing with a higher yield account option, like an IRA or money market fund. Choose a financial advisor who will help you determine the best place to save your surplus money.
Whether it is for an emergency car repair, home repair or medical bill, saving money is important. If you are just starting to build your savings, an account at your local financial institution can offer savings account options that meet your needs and give you fast access to your money when an emergency strikes.