Opening Savings Accounts are an excellent way to grow your wealth. Its interest-bearing feature lets you expand your idle wealth and urges you to maintain financial discipline. But to enjoy such benefits, you should have better clarity on your interest earnings.
This is when a Savings Account interest calculator is useful. It saves you from the hassle of manually calculating interest rates. Following are the other aspects it fulfils:
Purpose
The purpose of the calculator is to help evaluate the interest rates you earn on your Savings Account deposits monthly. It uses parameters like bank interest rates, account balance, present investments, and expected returns to estimate accurately.
How to use the calculator?
Using the Savings Account calculator is relatively easy. You need not hold technical expertise to derive results from it. Follow these steps:
- Specify the account type you use
- Enter the average balance you can maintain in the account
- Enter the interest rates offered by the chosen bank
- Enter the frequency at which you want to receive the interest
Once you enter these details, the calculator computes the interest income you will earn on your account. Note that you can use this tool on your bank’s website or the Banking app.
Benefits
- Convenient
Manually calculating the interest rates of your account are challenging. It takes a lot of time and can cause inconvenience. It is also impractical in the long run. Instead, you should use the calculator and save yourself from this hassle. Only enter a few details and the calculator computes values instantly.
- Minimal errors
Calculating the interest manually also leads to errors and inaccurate values. This eventually prevents you from arriving at sound decisions. One error and you need to start all over. But with the interest calculator, there is no scope for such mistakes. Since it is online, it provides cent per cent accurate results. This way, you can rest assured that the results are error-free.
- Manages finances
Financial planning includes a thorough assessment of your expenses and savings. The former can be anything, through physical or Mobile Banking. Hence, knowing how much money you can accumulate after interest is crucial. It guides you in devising a robust financial plan. Therefore, use the calculator. It lets you analyse your interest earnings in advance. That way, you can plan better.
- Convenient
Nowadays, almost every banking portal offers such calculators. It is free of cost and readily available. Moreover, you do not require extensive knowledge to use it. The fields in the calculator are self-explanatory.
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