Disclaimer: Whilst every effort has been made in building these savings calculators, we are not to be held liable for any special, incidental, indirect or consequential damages or monetary losses of any kind arising out of or in connection with the use of them. Full disclaimer. These tools are here purely as a service to you, please use them at your own risk.
Savings calculations and compounding
Our simple savings calculator gives you several options for compounding the interest on your savings or investment, and uses the compound interest formula. Options include daily, weekly, monthly, quarterly, half yearly and yearly compounding. If you want to know the compound interval for your savings account or investment, you should be able to find out by speaking to your financial institution. The standard interval for compounding savings with most banks appears to be either monthly or yearly compounding.
In addition to this savings calculator, we have another useful compound interest calculator, should you wish to use it. If you are looking to save towards a goal and want to know how long it might take, give the savings goal calculator a try.
What is the best way to save?
Whether you've got a specific savings goal in mind - from a new car, perfect holiday, the home of your dreams or for your retirement, it can be tricky to work out where to put your money to maximise your savings.
With so many options available for your savings - from a simple savings account (paying compound interest) to investing in the stock market, tax-free ISAs (UK) and IRAs (US) and even peer-to-peer lending - comparing the advantages and disadvantages of each, and the risks involved, becomes very important.
It's always advisable, in a situation like this, to assess yourself as a person - are you risk averse or do you prefer a more high risk, high reward strategy? Consideration should be given to the idea of diversification - splitting your money between various options in order to spread your risk.
The best advice remains, however, to speak to a qualified, independent financial advisor. They will assess your options based upon who you are and what you want to achieve. By doing this you feel more assured that your savings are invested well and that you have savings options personally tailored to your requirements and risk/reward strategy.
How long do you need to save for?
If you're wondering how long it might take you to save towards a specific goal, check out our calculator and article: how long will it take me to save?.