🏦 Savings Calculator
Calculate how your savings grow with compound interest. See total balance, interest earned, and the power of consistent saving.
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Frequently Asked Questions
What is the best savings account interest rate?
High-yield savings accounts (HYSA) currently offer 4-5% APY, significantly higher than traditional savings accounts (0.01-0.5%). Online banks like Ally, Marcus, and Discover typically offer the best rates. Shop around and compare rates regularly.
How is savings account interest calculated?
Most savings accounts compound interest daily and pay monthly. The formula is: A = P(1 + r/n)^(nt), where P=principal, r=annual rate, n=compounding frequency, t=time. Daily compounding maximizes your interest earnings.
How much should I save each month?
Follow the 50/30/20 rule: 50% needs, 30% wants, 20% savings. If you earn $5,000/month, save $1,000. Start with an emergency fund (3-6 months expenses), then save for goals. Even small amounts like $50-100/month compound significantly over time.
Are savings accounts FDIC insured?
Yes! FDIC insurance protects up to $250,000 per depositor, per bank. This means your money is safe even if the bank fails. Credit unions offer similar protection through NCUA. Always verify your bank is FDIC-insured.
Savings account vs investment account?
Savings accounts: Safe, liquid, low returns (4-5%), FDIC-insured. Investments: Higher returns (7-10%), but risk of loss, not insured. Use savings for emergency fund and short-term goals (<5 years), investments for long-term wealth building.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.