Use a High Yield Savings Account Calculator to Calculate Earnings

Are you among 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. Many 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 will 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 to explain 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 money. You used to go to your local brick-and-mortar bank and open a savings account.

Often, this account pays you very minimal amounts in interest from the bank.

Now, the Internet and online banking offer a whole wealth of better options for savings accounts and ones where you are likely to earn more money from your savings.

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. You can clearly see how to reach your savings goals by inputting some basic information.

There are really two ways to use a savings calculator.

First, 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 your savings over that period, assuming you don’t touch the account.

Another 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 keep.

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 calculate 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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