# Simple Savings

Hey there! This page is all about helping you understand saving and growing your money. Before we dive in, remember that the info here is just for learning, not for specific investment advice. Now, let’s talk about using the savings calculator below.

## Savings Calculator Tips

Start by entering how much money you want to begin with and how much you plan to add regularly. Play around with it! See how even a small monthly deposit can boost your savings over time.

## Savings Calculator Guide

### Starting balance

This is what you're putting into your savings at the start.

### Contribution amount

How much you're adding regularly, like every month.

### Time to grow

How many years you're leaving your money without touching it.

### Annual interest rate

This is how much extra money your savings might make each year.

### Compound frequency

How often your interest gets added.

## Savings Calculator — calculate future value

This calculator easily answers the question "If I save "X" amount for "Y" months what will the value be at the end?"

The user enters the "Periodic Savings Amount" (amount saved or invested every month); the "Number of Months" and the "Annual Interest Rate" or the annual rate of return one expects to earn on their investments.

The calculator quickly creates a savings schedule and a set of charts that will help the user see the relationship between the amount invested and the return on the investment. The schedule can be copied and pasted to Excel, if desired.

The investment term is always expressed in months.

- 60 months = 5 years
- 120 months = 10 years
- 180 months = 15 years
- 240 months = 20 years
- 360 months = 30 years

If you need a more advanced "Savings Calculator" - one that lets the user solve for the starting amount, the amount to invest, the interest rate, the term required to reach a goal or the future value; or if you would like to easily print the schedule; or if you need to pick a different investment frequency, then you may want to try the calculator located here: **https://AccurateCalculators.com/savings-calculator**

#### Currency and Date Conventions

All calculators will remember your choice. You may also change it at any time.

Clicking **"Save changes"** will cause the calculator to reload. Your edits will be lost.

### Wondering How Much to Save Each Month?

It's different for everyone, but a good goal is having enough in savings to cover three to six months of basic expenses. If you can save 20% of what you take home each month, awesome! But consistency is key, even if it's a smaller amount.

### Calculating Interest on Savings:

Just multiply your account balance by the interest rate for the time you're considering. That gives you the simple interest earned.

### APY Calculator - Annual Percentage Yield

APY includes compound interest, which means your money earns interest on the interest. Adjust the interest rate and compound frequency to see how it all adds up.

### Saving $5,000 Example

Just multiply your account balance by the interest rate for the time you're considering. That gives you the simple interest earned.

### Interest on $10,000

A standard bank might give you just $1 in a year with a 0.01% interest rate. But with a 4% interest rate in a high-yield savings account, you could earn over $400.

### How Much a Savings Account Grows

It depends on the interest rate, how much you put in, and how long you leave it there. Higher rates and more frequent compounding mean faster growth. For maximum growth, choose an account with a high yield that compounds daily.

### Let's Talk Growth

Okay, so how fast your savings account grows depends on a few things. First up, the interest rate. The higher the rate, the quicker your money multiplies. Also, we have this cool thing called compounding. Think of it like interest earning its own interest – the more, the merrier! Now, how often your interest gets added to your savings also matters. Daily compounding can make your money grow a bit faster than, say, monthly compounding. If you're aiming for maximum growth over time, aim for an account with a high yield that compounds daily.

### How Much a Savings Account Grows

It depends on the interest rate, how much you put in, and how long you leave it there. Higher rates and more frequent compounding mean faster growth. For maximum growth, choose an account with a high yield that compounds daily. Let's Talk Growth: Okay, so how fast your savings account grows depends on a few things. First up, the interest rate. The higher the rate, the quicker your money multiplies. Also, we have this cool thing called compounding. Think of it like interest earning its own interest – the more, the merrier! Now, how often your interest gets added to your savings also matters. Daily compounding can make your money grow a bit faster than, say, monthly compounding. If you're aiming for maximum growth over time, aim for an account with a high yield that compounds daily.

### Breaking It Down

Alright, let's break down some scenarios. Imagine you start with nothing and stash away $135 every month in a savings account. If that account has a 4% annual interest rate and compounds monthly, you'd end up with more than $5,000 in just three years. It's like a magic savings potion! Now, let's say you have $10,000. In a typical bank account with a 0.01% interest rate (which is quite common), you'd only earn a measly dollar in a year. But, if you throw that $10,000 into a high-yield savings account with a 4% interest rate, you could rake in over $400 in the same amount of time. That's the power of choosing the right savings spot!

### Final Thoughts

So, to sum it up: the secret sauce for a growing savings account is a combination of a good interest rate, consistent deposits, and compounding. Feel free to use the savings calculator to play around with the numbers and see how your money can blossom over time. Remember, there's no one-size-fits-all answer to how much you should save – just be consistent and watch your savings adventure unfold!