Save For Your Future With Savings Account Calculator Online

Savings account is a popular financial instrument worldwide because the various benefits it offers. Besides getting people into the habit of saving money, it also helps them earn interest on their saved amount. Hence, opening a savings account is definitely the way to go if you plan to secure your financial future.

With various options with competitive interest rates and year-round offers, savings accounts cater to all customers. Before you open a bank account for savings, knowing how to calculate the interest is crucial for making wise decisions. This article will discuss some important tips for calculating interest on savings accounts.

Savings Accounts – Types, Facilities, and More!

Simply put, a savings account encourages financial discipline by offering a competitive interest rate on the saved amount. Whether you’re employed, a student, a stay-at-home mom, or a retiree, saving money should be a daily habit. One may notice your finances being more organized once you have ingrained this habit.

Moreover, the features and benefits that savings accounts offer are alone a big enough reason to invest. Customers get interest amounts credited to their accounts, half-yearly, quarterly or even monthly to stay motivated. 

Here’s a list of features and benefits you can get with your savings account:

Passbook

Debit card

Interest banking

Life insurance

Chequebook

Accident insurance

Besides, the government provides various schemes and subsidies that benefit all age groups, and those require a mandatory savings account to access benefits. Banks also offer schemes and exciting offers based on the type of savings account you choose. Here are the types of savings accounts most popular among customers:

Zero Balance Savings Account

Salary Account

Jan Dhan Account

Women’s Savings Account

Minor Savings Account

Senior Citizen’s Savings Account

Benefits of Having a Savings Account

A savings account checks all the boxes when it comes to being useful. You can build a habit of saving money and earn interest with other offers. Beyond this, it also opens doors for several other banking services. Here are some other great benefits of having a savings account:

1. Helps You Avail benefits of Government Schemes

You must open a savings bank account to take advantage of government incentive programs and receive subsidies. That’s because the government aims to bypass middlemen in this process and offer direct transfer of benefits to individuals.

1. Helps You Go Digital

The government’s recent push for electronic payments has greatly increased the appeal of a savings account. You can now use various digital banking services to access your account and avoid visiting the bank frequently. Besides, making payments online from a savings account allows you to avail of discounts and other exciting offers.

1. Helps You Keep Track of Your Spending

Maintaining a record of your transactions is impossible if you use cash. On the other hand, all of your payment and receipt data is accurately recorded when you use a savings account. This aids in better understanding of your finances and proper tracking.

Tips to Calculate Interest on Savings Account

Savings accounts provide wide-ranging benefits to their users with very little effort. To choose the best-suited savings account option, follow these three simple tips to calculate interest on your account:

1. Select the Right Bank and Savings Account Type

The initial step is to conduct an extensive research and find a bank with all the necessary facilities. The types of savings accounts have been discussed previously – and each caters to different needs. So, check out all the features and benefits each type of savings account has to offer before making your decision.

1. Understand Interest Calculation

The interest rate is mentioned on the bank’s website and official documents. You need to make sure that you understand how the interest gets calculated. The standard formula for interest calculation is:

Interest per month = Daily Balance * (Number of days) * Interest / (Days in the year)

So, to calculate your earnings, consider your deposit amount, the interest rate, and the duration.

• How to Use a Savings Account Interest Rate Calculator?

On most banks’ websites, you will find a savings account interest rate calculator for a fast and accurate calculation of earnings. This tool will simplify your calculation process and help you make well-informed decisions. The process is simple – you must enter the details, and the results will be shown in seconds.

A savings account interest rate calculator needs three figures to display accurate results within seconds. The following are the figures you need to enter on the online calculator:

Principal Amount – Enter the amount you wish to keep in your savings account.

Rate of Interest – Enter the rate of interest provided by the bank.

Tenure – Tenure refers to the duration for which you want to keep your money invested.  

Once you enter the three figures mentioned above in a savings account interest rate calculator, it will display the amount you can earn over the intended period.  

Conclusion

A savings account will change how you handle your finances for the better. Make sure to utilize a savings account interest rate calculator for accurate earning estimations. 

This is your sign for you to achieve financial freedom by choosing the best-suited bank for your savings account.