Bank Saving Account Calculator
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Reviewed by Calculator Editorial Team
Use this bank saving account calculator to estimate how much interest you'll earn on your savings over time. Simply enter your initial deposit, interest rate, and time period to see your projected balance.
How to Use This Calculator
To use the bank saving account calculator:
- Enter your initial deposit amount in the "Initial Deposit" field.
- Select the interest rate type (APR or APY) and enter the rate.
- Choose the compounding frequency from the dropdown.
- Enter the number of years you plan to save.
- Click "Calculate" to see your projected balance.
- Review the result and chart showing your savings growth over time.
The calculator will show you the future value of your savings account, the total interest earned, and a chart illustrating your savings growth.
Formula Used
The calculator uses the compound interest formula:
Compound Interest Formula
A = P(1 + r/n)nt
Where:
- A = the future value of the investment/loan, including interest
- P = the principal investment amount (the initial deposit or loan amount)
- r = the annual interest rate (decimal)
- n = the number of times that interest is compounded per year
- t = the time the money is invested or borrowed for, in years
For APY calculations, the formula adjusts for the compounding effect to show the effective annual rate.
Worked Example
Let's calculate the future value of $5,000 saved for 5 years at 3% APR compounded quarterly.
Example Calculation
P = $5,000
r = 3% = 0.03
n = 4 (quarterly compounding)
t = 5 years
A = 5000(1 + 0.03/4)4*5 = $6,344.73
Total interest earned = $6,344.73 - $5,000 = $1,344.73
After 5 years, your $5,000 investment would grow to approximately $6,344.73, earning $1,344.73 in interest.
Account Comparison
Compare different savings accounts using this table:
| Account Type | APR | Compounding | Minimum Deposit | Fees |
|---|---|---|---|---|
| High-Yield Savings | 4.50% | Daily | $100 | None |
| Online Savings | 4.25% | Monthly | $1 | $5/month |
| CD (12-month term) | 5.00% | Daily | $1,000 | Early withdrawal penalty |
Use this comparison to evaluate which account type best fits your financial goals and needs.
Frequently Asked Questions
What is the difference between APR and APY?
APR (Annual Percentage Rate) is the simple interest rate, while APY (Annual Percentage Yield) includes the effect of compounding, showing the actual return you'll earn.
How often should I compound my savings?
The more frequently your interest is compounded, the higher your returns. Most savings accounts compound daily, while CDs may compound monthly or quarterly.
Is it better to have a high APR or a low APR with no fees?
A higher APR is generally better, but you should also consider fees and minimum deposit requirements. Some accounts with lower APRs may have better terms overall.