How to use the savings interest calculator

Using this savings calculator only takes a few minutes — simply enter a few key details: 

• Starting amount:The starting amount you plan to deposit into your savings account.

• Monthly contribution (optional):The dollar amount you will contribute each month to your savings account, if applicable. 

• Time to save:The amount of time you expect to keep your savings on deposit. You can choose a time period in months or years.

• Annual percentage yield:The percentage you'll earn on your bank account balance over one year when considering the effect of compound interest. 

• Savings goal (optional):If you have a desired savings target in mind, enter it here.

Interpreting your results

After you've filled out all of the fields, you will see a breakdown that includes the following: 

• What you'll have:The total balance you'll accumulate by the end of your projected timeline, including your initial deposit, additional contributions, and interest earned.

• Total deposited:The sum of money you will have personally contributed to the account.

• Interest earned:The total amount of interest generated on your savings account balance.

• Goal progress: How close you would be to reaching your goal based on projected contributions, interest rate, and time to save.

What affects how much interest you'll earn?

There are a few key factors that impact how much interest you can expect to earn on your balance. This includes: 

• Starting balance:The amount of money you initially deposit into your savings account is a key factor in how much interest you can expect to earn. The more money you deposit up front, the more interest you can generate from the start. 

• Compounding frequency:Most savings accounts earn compound interest, meaning you earn interest on both your original deposits and the interest you've already accumulated. The more frequently interest compounds (such as daily instead of monthly), the faster your balance grows.

• Time on deposit:The longer your money sits in the account, the more time it has to grow and compound. 

• Regular deposits:Making consistent deposits into your savings account will increase your balance and your interest earnings. 

• Changes in interest rates:Savings account rates are variable, meaning banks can raise or lower the APY over time. This is beneficial when rates go up, as you'll earn even more interest with no effort on your part. However, when rates fall, your bank may lower your rate, reducing future interest earnings. The exception is if you put your savings in a certificate of deposit (CD) , which earns a fixed rate of interest during the term.

How to maximize your savings 

You can easily grow your savings account balance by making a few smart moves: 

Compare account options 

When choosing where to deposit your money, it's important to shop around and compare accounts to find the best possible account terms. 

Traditional savings accounts often pay minimal interest. However, many online banks and credit unions offer high-yield savings accounts , CDs , and money market accounts , often with more competitive interest rates compared to what traditional banks offer. Even a difference of one or two percentage points can have a big impact on how quickly your savings grows, especially if you maintain a larger balance. 

In addition to comparing APYs, you should also evaluate any monthly fees, minimum balance requirements, and withdrawal limits to ensure the account you choose is the best fit.

Avoid fees that reduce your earnings

Monthly maintenance fees and other account charges can eat into the interest you earn. Look for savings accounts with no monthly fees — or choose an account where the fee can be waived by maintaining a minimum balance or meeting other requirements.

Automate contributions

Consistency is key when it comes to building your savings. The more money you keep in your savings account, the more interest you'll earn. Setting up automatic transfers from your checking account ensures you're consistently adding to your savings without having to think about it.

Avoid unnecessary withdrawals

Try not to tap into your savings unless you absolutely need to. Letting your money sit in your account will allow interest to compound and also help you avoid any potential withdrawal or minimum balance fees.

Take advantage of promotional rates and bonuses

Many financial institutions offer limited-time promotional rates and cash bonuses to attract new customers. This can help give your balance an immediate boost. Just be sure to read the fine print so you understand what requirements must be met in order to qualify for these promotions.