Having a Savings Account is the best way to increase your wealth. It allows idle funds to grow through its interest-bearing feature and encourages you to maintain financial discipline. However, to fully benefit from these advantages, you need to establish a clear understanding of your interest earnings.
This is when a Savings Account calculator helps. It saves you from the worries of manually calculating your interest rates. There are also other fun facts to know about the calculator.
About the Savings Account calculator
It lets you evaluate the monthly interest earned on your Savings Account balance. It uses inputs like bank interest rates, account balances, present investments, and expected returns to estimate accurate values instantly.
How to use the calculator?
Using the Savings Account interest calculator is simple. You do not require financial or technical expertise to derive results from it. Follow these steps:
Step 1: Specify the account you use
Step 2: Enter the average balance you usually maintain in the account
Step 3: Add the interest rates offered by banks
Step 4: Enter the frequency you prefer to receive the interest in your account (monthly/quarterly/half-yearly)
Once you input these details, the calculator computes the interest income you earn in your Savings Account. You can use this tool either on the bank’s website or the Banking app.
Why use the calculator?
- Convenience
Manually calculating interest rates can be a tedious task. It is time-consuming and causes inconvenience. It is impractical in the long run too. Instead, you should use the calculator and save yourself from this hassle. You should provide a few details, and the calculator computes values for you instantly.
- No errors
Calculating the interest rates manually may lead to errors and incorrect values. This eventually prevents you from arriving at sound decisions. One blunder, and you may need to start again. But with a Savings Account interest calculator handy, there is no scope for such mistakes. Considering it is computerised and provides accurate results, you can be relaxed knowing that the results are error-free.
- Easy to use
Nowadays, almost every banking portal provides such calculators. It is free of cost and readily available. Moreover, you do not require extensive knowledge to use one. The fields in the calculator are self-explanatory.
- Assist financial planning
Financial planning involves proper assessment of your budget and savings. This is possible through physical or Mobile Banking transactions. Hence, knowing the money you can accumulate after interest is crucial. It enables you to devise a robust financial plan. For this, it is best to use a calculator. It lets you analyse your interest earnings in advance. That way, you can plan better.
