Calculate Your Compounded Savings
Getting the Rate You Deserve
Saving money is important, but so is making sure your savings are working hard for you. Financial institutions not only offer different rates of interest on deposits, but they also compound savings at different frequencies. For any given rate of interest, the more frequently interest compounds the more money you will have saved up. In fact, the power of frequent compounding is so important that a 4.9% return which compounds daily will offer a greater return than a 5% rate which compounds annually.
See Current Savings & CD Rates
Are you curious if your bank is offering you a good deal on your money? You can use the table beneath the calculator to see current rates for savings & Certificate of Deposit products available.
Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it. Compound interest is the most powerful force in the universe. Compound interest is the greatest mathematical discovery of all time." - Albert Einstein
Reviewing Your Bank Statements
The Truth in Savings Act of 1991 requires banks to adhere to precise calculations and accounting methods to determine how much interest is earned. Both the daily balance & average daily balance methods calculate how much interest should be paid at the end of each day. Your savings account statements should highlight which accounting method is used. The compounding frequency for your account should also be listed on your monthly statements. No matter which compounding frequency is used, most banks typically make monthly payments near the beginning of each month.