Savings Interest Rate Calculator
Calculate the interest earned on your savings accounts and compare different interest rates. Find out how much your money can grow with compound interest over time.
Savings Results
Rate Comparison
Current Savings Rates (2024)
High-Yield Savings: 4.0-5.0% APY
Online Savings: 4.5-5.5% APY
Money Market: 4.0-5.0% APY
Traditional Savings: 0.01-0.5% APY
Tip: Shop around for the best rates
Understanding Savings Interest Rates
Savings interest rate calculators help you understand how your money grows over time with compound interest. Different compounding frequencies and contribution patterns can significantly impact your savings growth.
Compound Interest Formula
The future value of savings with compound interest is:
FV = P × (1 + r/n)^(n×t) + PMT × [(1 + r/n)^(n×t) - 1] ÷ (r/n)
Where: P = principal, r = rate, n = compounding frequency, t = time, PMT = payment
Compounding Frequencies
- Annual: Interest compounded once per year
- Semi-Annual: Interest compounded twice per year
- Quarterly: Interest compounded four times per year
- Monthly: Interest compounded twelve times per year
- Daily: Interest compounded 365 times per year
Impact of Compounding Frequency
More frequent compounding results in higher returns because interest is earned on interest more often.
| Compounding | $10,000 at 5% for 5 years | Interest Earned |
|---|---|---|
| Annual | $12,762.82 | $2,762.82 |
| Quarterly | $12,807.36 | $2,807.36 |
| Monthly | $12,819.39 | $2,819.39 |
| Daily | $12,824.32 | $2,824.32 |
Savings Account Types
- Traditional Savings: Low interest rates, easy access
- High-Yield Savings: Higher rates, usually online
- Money Market Accounts: Competitive rates, check-writing
- Certificates of Deposit: Fixed rates, penalty for early withdrawal
- Individual Retirement Accounts: Tax advantages, higher contribution limits
FDIC Insurance
Most savings accounts are FDIC-insured up to $250,000 per depositor, per bank. This protects your money even if the bank fails.
- Coverage: Up to $250,000 per depositor, per bank
- Joint Accounts: Up to $250,000 per person
- Multiple Accounts: Separate coverage for different account types
- Online Banks: Same FDIC protection as traditional banks
Maximizing Savings Growth
- Shop Around: Compare rates from multiple institutions
- Automate Savings: Set up automatic transfers
- Compound Frequently: Choose accounts with daily compounding
- Avoid Fees: Look for accounts with no maintenance fees
- Ladder CDs: Use different maturity dates for liquidity
Tip: Even small differences in interest rates can add up significantly over time due to compounding. A 0.5% difference in rate on $10,000 over 10 years can mean hundreds or thousands of dollars more in interest earned.