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Do You Need a Rainy Day Fund If You Already Have an Emergency Fund?Simple Savings Calculator
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BY DepositAccounts
Written by Tara Mastroeni | Edited by Ali Cybulski | Published on 03/28/2025
Whether you’ve just started saving or you’re working toward a particular goal, a savings calculator can help you determine how quickly your money will grow over time. Use our simple savings calculator to see how long you will need to achieve your aim.
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This number reflects how much you can afford to contribute to your account when you open it. While you can open some savings accounts with as little as $1, you will need to meet much higher minimum deposit requirements for other accounts. Be sure to read the disclosures to understand expectations for the account. |
| Additional contributions | This number reflects how much you can afford to contribute to your savings account regularly. A financial windfall can help you quicken progress toward your savings goals, but consistent contributions to your savings account will likely have a bigger effect on your investment over time. |
| Savings time frame | This number reflects how long you plan to contribute to your savings account. As a rule of thumb, the longer you plan to contribute, the bigger your savings account balance will grow. |
| Annual percentage yield (APY) | This is the rate at which your savings account will earn interest. APYs are printed in account disclosures and typically will be prominently displayed on bank websites. Generally, the higher the APY, the more interest you will earn on your investment. |
Comparing different types of savings accounts
If you’re not sure what type of savings account to choose, here are a few options to consider:
- Traditional savings accounts: Traditional savings accounts have lower APYs than high-yield savings accounts, much closer to the national average. They usually have variable interest rates and may come with initial deposit or ongoing balance requirements. These accounts often charge low or no monthly fees.
- High-yield savings accounts (HYSAs): As its name suggests, a high-yield savings account typically earns an APY that’s higher than the national average. In exchange, though, this type of account may require a higher minimum opening deposit or ongoing balance. HYSAs also come with variable interest rates and may charge low or no monthly fees.
- Certificates of deposit (CDs): CDs allow you to earn a fixed interest rate but tie up your money for a set period of time. You’ll likely face an early withdrawal penalty if you try to access cash from a CD before it matures, and this can eat into your earnings.
- Money market accounts (MMAs): Money market accounts combine the higher yields of a HYSA with the flexibility of a checking account. Typically, these accounts come with either debit card or check access, but you may face limits on the number of transactions you can make per statement cycle.
How to start saving money
If you’re unsure how to start saving money, this step-by-step guide can help you begin to set aside your income regularly.
- Determine how much you can afford to save. Look at your income and expenses — and your budget, if you have one — to come up with an amount that you can afford to save regularly. Even if you start small, such as setting aside $10 or $20 monthly, you can build your balance over time by saving consistently.
- Select the right savings vehicle. You can choose from a few different kinds of savings accounts. Be sure to do your research to know the right type of account for you. For example, a CD may be a good fit if you know you don’t need to access your money anytime soon and you’d like guaranteed returns. But if you might need to use that money occasionally, consider a HYSA instead.
- Review your account options. No two savings accounts are exactly alike. They may have different yields, requirements and fee structures. Shop around until you find an account that’s the perfect fit for you.
- Open your new account. This process can vary by financial institution. Typically, opening a bank account involves filling out an application and providing some form of identifying information, such as a Social Security number or government-issued ID. After you open the account, you’ll need to fund it with the required minimum opening deposit.
- Contribute to your account regularly. Once you have a savings account, do your best to regularly set aside the amount you chose in the first step. If you can save consistently, then you should be able to watch your balance grow over time.
Tips to meet your savings goals quickly
Here are some ways to meet your savings goals as quickly as possible:
- Set savings goals. Have goals in mind, including for account balance, savings frequency and contribution amount. Your goals can help you stay motivated over the long haul.
- Choose a savings account with a high APY. APYs can vary by account. Generally, the higher the APY, the faster your money will grow. Just make sure you can meet any account requirements, and avoid as many bank fees as possible.
- Consider automatic transfers. Many financial institutions allow you to set up automatic transfers between your checking and savings accounts. This method can help you save without even thinking about moving the funds regularly. However, make sure you keep enough money in your account to avoid overdraft fees.
- Take advantage of irregular income. Whenever you come into irregular income, such as a work bonus or an inheritance, take advantage of it by adding at least a portion of the amount to your savings account.