Using A Saving Account Calculator

A saving account calculator helps individuals to plan and predict their savings. This tool is available online for free or people can ask for one when they open a savings account. The calculator will calculate and show a balance, total savings added, and total interest earned. Since some savings accounts do not have a fixed interest rate, a saving account calculator will not produce an accurate calculation, but used just as a simple guide. Here are few things individuals need to know about using a saving account calculator.

Initial Investment

Opening a savings account will require some initial investment. The minimum investment differs depend on the type of savings account. You may add more money into your savings periodically. The money will then earn interest and get compounded over time. A saving account calculator can show you how much you should add in the savings account in certain periods. Also, a saving account calculator can calculate how long you need to reach your goal. Also, the calculator can help predict the future balance if you save for a certain period of time.

Types of Savings Accounts

You can invest your money in the bank or building society. Banking societies are also known as credit unions. The type of savings account you choose determine the interest rate and flexibility of withdrawing you money. There are savings deposits that allow you to add more savings later, others will not allow it. Long term savings account will give higher interest rate but you are only allowed to withdraw at certain period.

Interest Rates

The interest rate determines your ending balance and interest earned on your savings account. The higher the interest rate, the more interest you will earn. Some banks also have savings deposits that offer higher interest rates. Individuals can use the interest rate feature on a saving account calculator to calculate future and present value of cash flow.

Account Calculators

The compounding effect will be greater if your money stays in the savings account for a long period of time. If your savings account has an increase in the interest rate, then your savings account balance will increase. Saving account calculators are available online and you can use them for free. For example, you can find a reliable tool in www.halifax.co.uk. Also, you can look at www.saffronbs.co.uk to check current interest rates in United Kingdom for most savings accounts.




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