Do you have a savings account and want to know how much extra your savings gain you over a certain amount of years. The small piece of equipment that you can use is referred to as a savings account calculator. If you are unsure on how to use this, read the article as it will be discussing exactly how you can use it to your benefit.
Savings account calculator
What it is
One way to build a nest egg, house fund, or college savings fund is to deposit a fixed amount of money in a savings account every month. If you open a savings account at a credit union, or open a money market account with an online bank, you can often find annual interest rates around 3% or 4%. To compute how much savings you will have at the end of N years, you can use convenient savings account calculators on the Internet. If you know how much savings you will have in a given number of years, you can create a budget and a savings plan. A user guide
In order to calculate your interest on your savings, you will be required to provide the following information: - Your initial deposit
- The Annual interest rate (APR)
- Monthly deposit (İf any)
- Number of years of your savings There is also a savings formula that you can apply which is as follows: Suppose that you have an initial deposit of P dollars, an annual interest rate of r(expressed as a decimal), and you deposit D dollars in the account every month. Then the amount of money you will have at the end of N years is [P + 12D/r](1 + r/12)12N - 12D/r. If D = 0, that is, you don't make any additional deposits, then the amount that you will have at the end of N years is P(1+r)N. However, option one might serve you more comfortably.
How does it benefit you?
Most saving accounts are interest accounts. Some have a best fixed rate, others have low or high interest rates on their savings. All savings interest varies and therefore, it is advisable that if you are considering on opening a savings account, to do your research first. Research online and compare the best online savings before opening your very own savings account in the UK as this will save you and your savings money in the long-term.