High Interest Savings Account Calculator

A high-interest savings calculator helps plan savings deposits and shows how much will be earned over a specific period of time.

Even if you don't have a specific savings goal in mind, it's always a wise choice to save money by making regular deposits. You never know when you’ll need an emergency fund.

Here are the numbers you'll need to know in order to use a savings calculator:

• Your starting amount: The amount of money that you initially deposit into your savings account. The higher the balance, the more interest you'll earn.
• Number of years to save: The length of time that you plan to let your investment grow. The longer the period, the more interest you'll earn.
• The interest rate: The percentage of interest your savings balance earns over a certain period. Essentially, this is the rate at which your money will grow.

For example, let's say you plan to save for 5 years. If you contribute $200 per month and have a 2.75% interest rate, your balance will grow to $13,107.29 by the end of this timeframe. Add two more years to that, you'll have $18,787.46.

Savings Strategies

There are two strategies most people use to maximize their savings accounts.

1. Make a single deposit

Instead of regularly contributing funds to a high interest savings account, sometimes people deposit one lump sum and let it grow.

You might come into some money from the sale of a house or property, come into an inheritance, or even win the lottery and decide to store the funds in a high interest account to maximize the earning potential.

As an example, if you deposit $5,000 into an account with 3.5% interest and leave it there for 5 years, you'd have a balance of $5,954.71 – nearly $1,000 more than where you started.

2. Make regular deposits

On the other hand, making regularly scheduled deposits is an alternative to contributing a single lump sum. You can allocate a percentage or a dollar amount to set aside for savings and make a schedule for these deposits, making it part of your regular budget.

The first thing to do is decide how often you'd like to contribute to your savings. Then decide how much you can afford to deposit each time. Our initial example shows you contributing $200 on a monthly basis for 5 years, which results in $1,107.29 of earned interest.

Ideally, you would combine both of these strategies to maximize your earning potential.

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