This savings calculator can help you estimate how much interest your savings can earn overtime. That way, you can get a clearer picture of your long-term savings and decide whether an account is right for you.
You can use the savings calculator to estimate what your savings could look like in several years' time. It may help to know some numbers to provide a more accurate estimate, such as:
How much you should keep in a savings account depends on your financial goals, as well as any monthly service fees you may be trying to avoid.
Common uses for savings accounts include:
You will want to keep a high enough balance in your account to avoid any monthly service fees, which are charged by some bank accounts.
You may also want to keep a higher balance in your bank accounts to qualify for a premium account, such as Citigold.
Simple interest is easy to calculate: your interest is the principal multiplied by the interest rate multiplied by the number of time intervals.
However, what most people want to know when calculating their savings account interest over time is compound interest, or how that interest will build upon itself and grow over time. Calculating compound interest is a bit trickier than calculating simple interest. You can calculate monthly compound interest over the course of a year with the formula:
But if that math leaves you scratching your head, the above simple, savings interest calculator from Citi does the math for you, so you can focus on saving.