The savings account interest calculator uses two different methods – Monthly Deposit and Savings Goal. The Monthly Deposit method focuses on the outcome of making regular deposits. The Savings Goal sets your savings target, then helps you determine the monthly deposits you’ll need to reach a specific savings goal.

Either method can also serve to help you as a retirement savings calculator, as well since at least some of your retirement savings should be held in interest-bearing investments. 

Let’s work examples using each of the two methods.

The monthly deposit method 

Using the monthly deposit method, you’ll need to enter four pieces of information:

  • initial amount – this is your current savings balance.
  • monthly deposit – enter how much you expect to deposit into savings each month.
  • annual interest (compounded monthly) –  enter the interest rate you expect to earn on your savings based on current rates.
  • number of years – enter the number of years you plan to make monthly deposits using the slide to the right.

We’ll use the following input information: 

  • initial amount: $5,000.
  • monthly deposit: $500.
  • annual interest (compounded monthly): 2.00%.
  • number of years: 10.

Once the information is entered, you’ll hit the “Calculate” button in the middle of the Simple Savings Calculator to get your results.

With the input provided above, the results will be as follows: 

  • total contributions: $65,000 (which includes your initial deposit.)
  • interest earned: $7,465.83 (which is your cumulative interest earned over the 10-year time frame.)
  • final savings: $72,465.83 (this the combination of your contributions and interest earned.)  

Once again, the Monthly Deposit method is the one you should use if you want to determine the outcome of your current savings plan.

The savings goal method

The savings goal method also requires you to enter four pieces of information:

  • initial amount – this is your current savings balance.
  • savings goal – this is how much you hope to have saved by your desired target date.
  • annual interest (compounded monthly) –  enter the interest rate you expect to earn on your savings based on current rates.
  • number of years – enter the number of years you plan to make monthly deposits using the slide to the right.

We’ll enter the following input information:

  • initial amount: $5,000.
  • savings goal: $100,000.
  • annual interest (compounded monthly): 2.00%.
  • number of years: 10.

Once the four pieces of information are entered, you’ll hit the “Calculate” button in the middle of the Simple Savings Calculator screen to get your results.

The calculator will provide the following results: 

  • estimated monthly deposit needed to reach goal: $759.07.
  • total contributions in savings term: $$96,088.40 (which once again also includes your initial deposit.)
  • interest earned in savings term: $3,911.60 (which is your cumulative interest earned over the 10-year time frame.)

You’ll want to use the Savings Goal Method if you want to set a specific savings level target, and need to know what you’ll have to do to reach it.

In this way, the Savings Goal Method works more closely as a retirement savings calculator, helping you to determine how much you’ll need to save on a monthly basis to be prepared for retirement.

Looking for one of the best savings accounts? Try CIT Savings Builder

One of the most popular online savings accounts available anywhere is the CIT Savings Builder account, and there are plenty of reasons why.

Let’s start with the interest rate it pays, since that’s the main reason anyone opens a savings account. The CIT Savings Builder pays one of the highest interest rates of any bank, currently at up to APY. And you don’t need a large amount of money to get that rate either. 

The rate applies to minimum balances greater than $25,000. But there is a workaround – one that will allow depositors with even the smallest account balances to earn the top rate.

Even if you don’t have $25,000, you can still earn  APY simply by making monthly deposits of $100 or more. So, if you can direct deposit at least $100 into your CIT Savings Builder account each month, from payroll savings or auto-drafted from an external bank account, you can earn the top rate. 

That’s the big advantage with this account. Most high yield savings accounts do require a large minimum balance. But with the CIT Savings Builder monthly deposit system, depositors at all levels can take advantage of some of the highest interest rates in the industry. That also makes it one of the best savings accounts possible if you’re looking to build your savings with the help of high-interest rate returns. 

And that’s exactly why they call it the CIT Savings Builder account.

The CIT Savings Builder bonus – Up to $300

High interest rates aren’t all you’ll get with a CIT Savings Builder account. The Bank is also paying a bonus of up to $300 on large deposits.

If you open a new account, or add funds to an existing account, you’ll be eligible for the following bonuses: 

  • $150 with a deposit of between $25,000 and $49,999.
  • $300 with a deposit of $50,000 or more.

To qualify for the bonus, you’ll need to open the account and fund it within 15 calendar days of the opening date. If you’re adding funds to an existing account, you’ll need to deposit them within 15 calendar days of bonus program enrollment with new money from an external account. 

You’ll also need to maintain the minimum balance requirement for at least 90 calendar days before the bonus will be paid.

The high interest rate, plus the generous bonus offer, are the reasons we’re so excited about the CIT Savings Builder account.

CIT is one of the largest banks in the country, with more than $50 billion in assets. They also offer some of the most innovative CDs in the industry, as well as money markets and home loans. 

If you’ve had enough of the microscopic interest rates being paid by your local bank or credit union, you owe it to yourself to take a long, hard look at opening a CIT Savings Builder account.

Summary

The Money Under 30 Savings Interest Calculator lets you determine what interest you’ll earn on your savings accounts. It does this by looking at your monthly deposit or savings goals.

See what you could really be earning on your savings account!

Read more

  • 6 Ways To Know You’ve Found The Best Savings Account For You
  • Best High Yield Savings Accounts Compared