Bank Interest Rate Calculator

Summary:

Use our savings account interest calculator to see your ending balance and total compound interest in seconds. Enter your deposit, compare up to three annual percentage yields (APY), choose the number of years and get side-by-side results. Pick the rate that pays you more-no spreadsheets.

Saving Deposited*

Interest Rate 1*

Interest Rate 2*

Interest Rate 3*

Years Deposited*

Your Results

Based on the information you entered, the total balance, including principal and interest, would be:

$60,950$74,012$89,542

These estimates are provided for informational purposes only. Always consult a banker for your individual situation.

How to use this savings rates calculator

The calculator assumes you are using a tax-advantaged account and that interest is compounded monthly. Sample numbers are provided so you can see how the calculator works before entering your own details.

Saving deposited: Enter the amount of money you plan to set aside in savings. This is your starting balance, also known as the principal.
Annual Percentage Yield 1: Type in the first annual percentage yield you’d like to compare. This will show you how your savings would grow at that rate applied.
Annual Percentage Yield 2: Enter a second annual percentage yield to see how different rates affect your total balance over time.
Annual Percentage Yield 3: Add a third annual percentage yield for comparison. This allows you to view side-by-side results for three different scenarios at once.
Years deposited: Choose the number of years you plan to keep your savings invested at each rate. The calculator uses this time frame to show your projected balance, including both your original deposit and the interest earned.

How to read your APY rate calculator results

The calculator displays a side-by-side comparison of how your savings grows under different interest rates over the number of years you selected.

Bar chart: Each bar represents the total balance (your initial deposit plus interest earned) at the end of the deposit period for one of the interest rates you entered.
Dollar amounts below each rate: The returned figures (e.g. $60,950; $74,012; $89,542) show the projected value at that specific rate.
Comparing Results: The higher the interest rate, the taller the bar and the greater your total balance. This makes it easy to see how much more your savings could grow if you earned a higher return.

Tip: Use this tool to test how different rates impact your long-term savings. Even small increases in the interest rate can make a big difference over time, especially when compounding is applied.

How should you calculate bank savings rates?

The interest you earn on a bank savings account is based on both the amount you deposit and the rate your bank offers. To understand how much your money will grow, you can use this simple process:

Identify the principal (your deposit): This is the starting amount you put into your savings account.
Find the annual percentage yield (APY): The annual percentage yield reflects the true yearly rate of return, including compounding. This is the figure banks use to help you compare savings products.
Determine compounding frequency: Savings account typically compound monthly, which means interest is added to your balance at that internal. The more frequent the compounding, the more you earn.
Apply the formula: 𝐴 = 𝑃 × (1 + 𝑟 / 𝑛)ⁿ ˣ ᵗ

Where:

𝐴 = Ending balance (principal + interest)
𝑃 = Principal (your deposit)
𝑟 = Annual interest rate (as a decimal)
𝑛 = Number of compounding periods per year
𝑡 = Number of years deposited

Example:

If you deposit $10,000 at 4% APY compounded monthly for 5 years:

𝐴 = 10,000 × (1 + 0.04 / 12)¹² ˣ ⁵ = $12,216

This calculation shows how your balance grows not only from the original deposit but also from interest compounding on previously earned interest.

Tip: Even small differences in interest rates (like 0.50%) can have a big impact over time, especially for larger deposits or longer terms.

Glossary of savings terms

Principal: The original amount of money you deposit into a savings account, CD or other savings product.

Annual percentage yield (APY): The yearly rate of return on your savings, including the effects of compounding. APY makes it easier to compare accounts.

Compounding: The process of earning interest on both your original deposit and the interest that has already been added. Compounding can occur daily, monthly or annually.

Liquidity: How quickly and easily you can access your money without fees or loss of interest. Savings accounts are highly liquid, while CDs are less liquid.

Minimum balance requirement: The lowest amount you must keep in the account to avoid fees or to earn the advertised interest rate.

FDIC insurance: Protection that insures deposits (up to $250,000 per depositor, per institution) in case the bank fails.

Interest rate: The percentage the bank pays you for keeping your money in the account. Unlike APY, it does not reflect compound interest.

What should you know when choosing a savings account?

Not all savings accounts are the same. The right choice depends on your financial goals, how often you’ll need access to your money and what features matter most to you. Here are key factors to consider:

APY: Compare annual percentage yields to see how much your savings will earn over time. Even a small difference in APY can add up.
Fees: Watch for monthly maintenance fees, minimum balance fees or withdrawal limits that can eat into your savings.
Minimum deposit requirements: Some accounts require a certain deposit to open or maintain the advertised rate.
Liquidity and access: Make sure the account fits how you plan to use your money. Traditional savings accounts allow easy transfers, while high-yield savings accounts or CDs may limit access.
Compounding frequency: Daily or monthly compounding will grow your money faster than annual compounding.
FDIC insurance: Check that the bank insures deposits up to $250,000 per depositor, per institution.
Digital tools & convenience: Consider whether the bank offers mobile apps, online transfers, and ATM access.
Special features: Some accounts include perks like automatic savings transfers, linked checking accounts or higher rates if you set up direct deposit.

Tip: If you’re saving for both short-term access and long-term growth, you may want to use a combination of accounts—such as a traditional savings account for emergencies and a high-yield savings or CD for long-term goals.

How much should I save each month?

The right monthly savings amount depends on your income, expenses and financial goals. While there’s no one-size-fits-all answer, here are some common guidelines:

Establish a framework: A popular budgeting framework suggests allocating 50% of income to needs, 30% to wants and 20% to savings and debt repayment. If you can, direct the full 20% toward savings.
Emergency fund first: Aim to build 3–6 months of essential expenses in an accessible savings account. This should be a priority before focusing on long-term investments.
Retirement savings: Financial experts often recommend saving 10–15% of your income for retirement, starting as early as possible.
Specific goals: If you’re saving for a down payment, vacation or other big purchase, divide the total cost by the number of months until you need it. That number is your monthly savings target for that goal.

Examples:

On a $5,000 monthly income, saving 20% means putting aside $1,000 each month.
If you want $12,000 for a home down payment in two years, you’d need to save $500 per month.

Tip: Automating your savings with direct transfers into a dedicated savings account is one of the easiest ways to stay on track. Start with what you can afford. Even $50 or $100 per month adds up; then increase your contributions as your income grows.