Savings Account Calculator

The seemingly endless savings account options can be confusing and if you are wondering how they relate to real savings on your money then you need to get to know our savings account calculator. You can choose any configuration of deposits, interest rates, savings goals and starting amounts to see how your savings plan will pan out, or see how much you need to set aside each week to reach your savings goal.

What to Put into a Savings Account Calculator

So, now you have the savings account calculator tool, what do you do with it – you need to know the importance and relevance of each variable you choose, and you’ll know everything you need to know about savings accounts.

How to choose savings account calculations:

• Choose a savings target. This doesn’t have to be a specific number, but you do need to make sure you know why you are saving. The reason for your savings is important to help you decide which is the best savings account for you, and having a clear goal can also keep your on track – this is also why many high interest savings accounts will let you name your account things like ‘Holiday’ or ‘Wedding’ or ‘House Deposit’ to keep you motivated and inspired to save. 
• Make a budget to see what you can save. There is no point in setting a savings goal you can’t reach because you just don’t have enough spare cash at the end of each week to contribute the funds to your savings – it is not productive to have an unrealistic goal as you are easily discouraged and are more likely to just give up on savings all together. Instead, work out how much you can comfortably contribute to your savings each week, and in the weeks when you have a little spare cash left over, you can add that as a bonus, but for the rest of the time you can keep your savings comfortably on track. 
• Choose an interest rate. The interest rate is another way to give your savings a bonus and choosing the best interest rate can see you fulfilling your dream a lot faster. Make sure the interest rate you are entering into the savings account calculator is a realistic one too because you may be entering a bank’s promotional rate which could expire before you reach your savings goal and reverts to a lower rate, extending your savings plan. 
• Do you have a starting amount? If you already have some savings – even if it is only a couple of hundred dollars – starting your savings account with a balance of savings can give your goal a boost. High interest savings accounts calculate interest daily, and then compound that interest throughout the month, so even before you’ve made your first scheduled deposit you can be earning interest from your opening balance.

What to Get Out of a Savings Account Calculator

So now you’ve played around with the figures and made some calculations on your savings and the effects different deposits, account choices and interest rates can have – what do you do with all that information?

What the savings account calculations mean:

• Will you exceed your savings goal? The savings account calculator may have revealed that with the amount you can spare each week and the interest rates you’re eligible for, you will reach your savings goal in half the time you expected – therefore you may decide to open two high interest savings accounts to create an emergency fund and a dream purchase fund.
• Will you meet your savings goal? You may have found that the savings goal you entered into the calculator was out of reach with the contributions you could make, and the interest rates offered on your chosen savings account. Therefore, you may consider a term deposit investment which offers a higher interest rate which you can compare here, or perhaps you need to readjust your budget to be able to save more towards your goal. 
• Do you need to contribute more often? If you found you would reach your savings goal faster if you make more regular contributions this is because you will benefit from compounding interest and perhaps you need to choose a savings account which rewards you for regular contributions, or which allows you to set up an automated transfer. 
• Do you need all the bonus interest you can get? Then perhaps you need to consider a savings account which rewards you with bonus interest when you don’t make a withdrawal – put that higher interest rate into the savings account calculator and see how much faster you reach your goal. So can you exercise enough control to not make any withdrawals?

You don’t need to be a financial planner to start planning your financial future because no one knows your money needs and habits better than you do. Therefore, start with our calculator tools and use our savings account and term deposit comparison tables to see which option best suits your needs.