Having a Savings Account is an excellent 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, it is important 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. Here are other things worth knowing about this tool:
What is a Savings Account calculator?
It helps you evaluate the monthly interest earned on your Savings Account balance. It uses inputs like bank interest rate, account balance, present investments, and expected returns to estimate accurate values instantly.
How to use the calculator?
Using the Savings Account interest calculator is relatively easy. You need no 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: Enter the interest rate offered by your bank
Step 4: Enter the frequency at which you prefer to receive the interest in your account (monthly/quarterly/half-yearly)
Once you provide such details, the calculator computes the interest income you earn in your Savings Account. You can use this tool on your bank’s website or the Banking app.
Why use the calculator?
Convenience
Manually calculating interest on your account is a tedious task. It takes a lot of time and causes inconvenience. It is also impractical in the long run. Instead, you should use the calculator and save yourself from this hassle. You only need to provide a few details, and the calculator computes values for you instantly.
Zero errors
Calculating the interest manually also leads to errors and inaccurate values. This eventually prevents you from arriving at sound decisions. One blunder, and you need to start all over again. But with a Savings Account interest calculator at hand, there is no scope for such mistakes. Since it is computerised and it gives you accurate results. In this manner, you can relax knowing that the results are error-free.
Easy to use
Nowadays, almost every banking portal offers this calculator to users. 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.
Financial planning
Financial planning entails a thorough assessment of your expenses and savings. The former can be anything, through physical or Mobile Banking transactions. Hence, knowing how much money you can accumulate after interest is imperative. It guides you in devising a robust financial plan. Hence, it is best to use the calculator. It enables you to analyse your interest earnings in advance. That way, you get to plan better.
