Use a High Yield Savings Account Calculator to Calculate Earnings
Are you one of the 39% of Americans who might face a financial struggle if you had a $400 emergency? Let’s face it, saving money can be hard. For many, they simply run out of money before they get to the saving part.
Yet, for many Americans, saving money is connected to goals for the future like making a big purchase, funding education, or retirement. If you are going to tuck your hard-earned money into a savings account, you want one that makes you the most in interest.
You can even use a high yield savings account calculator to help you figure out how quickly you will reach your financial goals. How do these calculators work? Read on for an explanation of high yield savings account calculators and how they can help you calculate your money goals.
What Is a High Yield Savings Account?
If you follow financial news at sources like CFI, you know a high yield savings account is a newer way to save your money. It used to be you went to your local brick and mortar bank and opened a savings account.
Often this account paid you very minimal amounts in interest from the bank.
Now, the internet and online banking offer you a whole wealth of better options for savings accounts and ones where you are likely to earn more money from your savings too.
High yield savings accounts offer better interest rates over time.
So, how do you choose one to open? How do you figure out which might get closest to your financial goals?
High Yield Savings Account Calculator
You can use a high yield savings account calculator. By inputting some basic information, you can have a clear picture of how to reach your savings goals.
There are really two ways to use a savings calculator.
First, you might consider how much you can contribute to the account each month. Start by entering how much you already have in savings. Then enter the amount you plan to add each month. Tell the calculator what interest rate you are earning from the account. Then enter how long you plan to pay in that amount each month.
The savings account calculator can take these four pieces of information and calculate what your savings will be over that time period, assuming you don’t touch the account.
The other way to use a savings account calculator is by considering your savings goals. Start by entering how much you already have in savings. Then add your goal amount or how much you hope to save. Next, enter the interest rate the savings account will pay. Finally, include how long you have to save.
Then the calculator will tell you how much you need to put away each month to reach that goal, factoring in the interest you will make over time.
Use a High Yield Savings Account Calculator to Calculate Potential Earnings
The high yield savings account calculator is a great tool for goal setting with your savings. It helps you to calculate either how much you will save overtime at a certain interest rate, or how much you need to save to reach a certain amount of savings.
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