This savings accounts rates calculator helps you compare interest rates (APY) on different savings accounts offers and see which one generates the highest end balance if you intent to deposit a starting amount plus additional (monthly) contributions.
How does this compare savings accounts rates calculator work?
This tool can help you make a comparison on how the different APY rates you receive from bank offers have an impact on your savings account final balance.
The algorithm behind this calculator uses the formulas explained below, while it assume the annuity payments are made at the beginning of each period and that the compounding frequency rule is the same with the regular contributions frequency:
- Formula for estimating the future value of the starting deposit:
- Formula for calculating the future value of the additional contributions:
- Total accumulated in account at the end of the period:
- Total principal saved:
- Total interest earned:
Where:
r = Annual interest rate
t = savings term in years
c = coefficient for the no. of payments and compounding frequency per year
PV = starting deposit
PMT = additional contribution paid at the beginning of each period
20 Apr, 2015