Savings Calculator

Calculate how much your savings will grow over time with interest and regular deposits. Plan your savings goals effectively.

Initial Deposit ($)

Monthly Deposit ($)

Annual Interest Rate (%)

Savings Period (years)

Future Savings Balance

Total Deposits: $0

Interest Earned: $0

Total Return: 0%

Building Your Savings

Our savings calculator shows how your money can grow over time through interest and consistent deposits. Whether saving for an emergency fund, down payment, or future goals, understanding growth helps you plan effectively.

Types of Savings Accounts

High-Yield Savings Account: Currently offering 4-5% APY. FDIC insured up to $250,000. Best for emergency funds and short-term goals.

Money Market Account: Similar rates to high-yield savings, often with check-writing privileges. May require higher minimum balance.

CD (Certificate of Deposit): Fixed rate for set term (3 months to 5 years). Higher rates than savings but money is locked up. Early withdrawal penalties apply.

Traditional Savings Account: Low interest (0.01-0.5%) but easily accessible. Fine for day-to-day spending overflow.

Building an Emergency Fund

Financial experts recommend 3-6 months of expenses in an emergency fund:

3 months: Dual-income households with stable jobs
6 months: Single income, self-employed, or unstable industry
9-12 months: High expenses, sole breadwinner, or very risk-averse

Keep emergency funds in high-yield savings for easy access and growth.

Savings Strategies

Pay Yourself First

Automate savings by setting up automatic transfers on payday. Treat savings like a bill that must be paid. Even starting with 10% of income builds significant wealth over time.

The 50/30/20 Budget Rule

50% Needs: Housing, utilities, food, transportation
30% Wants: Entertainment, dining out, hobbies
20% Savings: Emergency fund, retirement, debt payoff

Savings Goals by Age

By 30: 1x annual salary saved
By 40: 3x annual salary saved
By 50: 6x annual salary saved
By 60: 8x annual salary saved
By 67: 10x annual salary saved for retirement

Maximize Interest Earnings

Shop for highest APY - rates vary significantly between banks
Online banks typically offer higher rates than traditional banks
Consider CD ladders for better rates while maintaining access
Monitor rates and switch banks if yours becomes uncompetitive
Use multiple accounts for different goals (emergency, vacation, down payment)

Frequently Asked Questions

How much should I save each month?

Aim for at least 20% of your gross income. If that's not feasible, start with 10% and increase gradually. The key is consistency - saving $200/month for 30 years at 5% interest grows to over $165,000.

What's a good interest rate for savings?

As of 2025, high-yield savings accounts offer 4-5% APY. Traditional bank savings often pay less than 0.5%. Online banks typically offer the best rates. Shop around and don't settle for low rates.

Should I save or invest?

Both! Emergency fund (3-6 months expenses) goes in high-yield savings for safety and access. Long-term goals (5+ years) like retirement should be invested in stocks/bonds for higher returns. Medium-term goals (1-5 years) can use mix of savings and conservative investments.

How long to save $10,000?

Depends on monthly deposits and interest. Saving $200/month at 4% APY: 48 months (4 years). Saving $500/month: 19 months. Saving $1000/month: 10 months. Use our calculator to find your timeline.

Are savings accounts FDIC insured?

Yes, most savings accounts are FDIC insured up to $250,000 per depositor, per bank. This means even if the bank fails, your money (up to the limit) is protected by the federal government. Always verify FDIC membership.

Should I pay off debt or save?

Build small emergency fund ($1,000) first. Then prioritize high-interest debt (credit cards >10%). For low-interest debt (mortgage 3-5%), you can save and pay debt simultaneously. Always get employer 401k match before anything - it's free money.

What's the best savings account?

Best features: high APY (4-5%), no monthly fees, no minimum balance, FDIC insured, easy mobile app, quick transfers. Popular options include Marcus by Goldman Sachs, Ally Bank, Capital One 360, and Discover Bank. Compare current rates before opening.

How does compound interest help savings?

Compound interest means earning interest on your interest. $10,000 at 5% simple interest earns $500/year. With compound interest, year 2 earns 5% on $10,500 ($525), year 3 on $11,025, etc. Over 20 years: simple interest = $20,000 vs compound = $26,533.