Based on your details, you can compare the following savings accounts

What is a savings account calculator?

A savings account calculator is an online tool that will tell you how fast your savings will grow.

To use RateCity’s savings account calculator, all you have to do is input the following information:

  • Your initial deposit
  • Your expected regular deposits
  • How long you plan to keep the money in the account
  • The interest rate you expect to earn

Based on those numbers, the calculator will then tell you:

  • How much you will earn in interest
  • Your final balance

The calculator will create a graph that will illustrate the growth in your savings over time.

How can a savings account calculator help you

The great thing about a savings account calculator is that you can research different scenarios. You can see how your savings will be affected with different deposit sizes, savings periods and interest rates.

For example, your goal may be to have at least $20,000 in the next 3 years. You have an initial deposit of $3,000 and you’re looking at a savings account that pays 2 per cent interest. You could play around with regular deposit amounts and your projected earnings to see how much you’d need to budget for.

In this scenario, if you deposited $475 each month, you’d reach your goal in 3 years and have $20,794. Your total interest earned would be $694, as this interest rate is relatively low. 

How to find a savings account

Your next step should be to research savings accounts. The simplest way to do this is to use comparison tables.

Comparison tables will not only tell you how much interest each savings account will pay, but also other relevant information. This could include whether it charges an account-keeping fee or requires a minimum opening deposit.

Pay close attention to both the ‘base rate’ and the ‘maximum rate’. Ideally, these numbers should be one and the same. If they’re different, that tells you that you will have to meet certain conditions if you want to earn the maximum rate. Otherwise, you’ll only receive the lower base rate.

Sometimes the difference between the base rate and maximum rate can be as high as two percentage points. Don’t sign up for an account that has two different rates unless you’re satisfied that you understand exactly what you need to do to qualify for the maximum rate.