If you're looking for a safe way to grow your money, a high yield savings account may be the answer. Unlike traditional savings accounts that offer little to no interest, high yield savings accounts provide significantly higher interest rates, allowing your money to grow faster over time. But how much can your money actually grow? Use the free savings calculator to determine how much your money can grow over time. Calculate interest growth on all your savings accounts, including high yield savings accounts, traditional savings accounts, and money market accounts.
Here are today's best rates and the current average yields for traditional savings accounts, high-yield savings accounts, and money market accounts. The best savings accounts help you grow your money safely, but there are major differences in the interest rates you can earn depending on the type of account you choose. High yield savings accounts typically offer the highest interest rates, but they may require a higher minimum balance and limit the number of withdrawals you can make per month.
You may have noticed the interest rate on your high-yield savings account changing over time. Here's why that is and why you should have one. High yield savings account rates are influenced by the federal funds rate and can change as often as every month. This means that your interest rate and the amount of interest you earn can fluctuate over time. However, even with these changes, high yield savings accounts still offer significantly higher interest rates than traditional savings accounts.
Use this intuitive calculator to figure out how much you'll earn from different certificate of deposit term lengths. Certificate of deposits (CDs) offer guaranteed interest rates for a certain period of time, usually ranging from a few months to a few years. The longer the term length, the higher the interest rate you can earn. However, CDs typically have early withdrawal penalties if you need to access your money before the term is up.
The best savings accounts help you grow your money safely. But there are major differences in the interest rates you can earn depending on the type of account you choose. High yield savings accounts typically offer the highest interest rates, but they may require a higher minimum balance and limit the number of withdrawals you can make per month. Money market accounts also offer competitive interest rates, but they may require a higher minimum balance and can be subject to fees.
See what effect compounding interest has on a high-yield savings account with our simple calculator. Compounding interest means that you earn interest not only on your initial deposit but also on the interest you've previously earned. This can significantly increase the amount of interest you earn over time. High yield savings accounts typically compound interest daily or monthly, depending on the account.
Our savings calculator can show you how much cash you'll have after a specified period of time. It's all the savings motivation you'll need. Simply enter your initial deposit amount, monthly contribution, interest rate, and time period, and the calculator will show you how much money you'll have at the end of the term. This can help you set savings goals and stay motivated to save.
Compounding interest calculator: Here's how to use NerdWallet's calculator to determine how much your money can grow with compound interest. Simply enter your initial deposit amount, interest rate, and time period, and the calculator will show you how much your money can grow with daily or monthly compounding. This can help you compare different savings accounts and choose the one that offers the best interest rate for your needs.
If you plan to take out a mortgage, you might need to have mortgage reserves in addition to a down payment and closing costs. Mortgage reserves are savings that you set aside to cover your mortgage payments in case of financial hardship, such as a job loss or medical emergency. High yield savings accounts can be a good option for mortgage reserves because they offer higher interest rates than traditional savings accounts and are FDIC-insured, meaning your money is protected up to $250,000 per account.
In conclusion, high yield savings accounts can be a great way to grow your money safely and earn higher interest rates than traditional savings accounts. Use our free savings calculator to determine how much your money can grow over time and compare different savings accounts to find the best option for your needs. With a little patience and discipline, you can watch your savings grow and achieve your financial goals.
