Savings Account Calculator
Calculate the maturity amount of your savings account. Enter monthly deposit, interest rate, and term to see your after-tax returns.
Simple interest: Interest is calculated only on the principal. Most regular savings accounts use this method.
📖 How to Use
- Select savings type (Simple/Compound)
- Select tax type (Tax-free/Standard/Reduced)
- Enter monthly deposit amount
- Enter annual interest rate (%)
- Enter savings term in months
- View maturity amount and interest breakdown
✨ Features
- ✓Simple and compound interest calculation
- ✓Tax-free/Standard (15.4%)/Reduced (9.5%) tax options
- ✓Detailed breakdown of principal, gross interest, tax, and net interest
- ✓Monthly accumulation table
- ✓Effective yield (after-tax annualized) calculation
📐 Formula
Simple: Interest = Monthly × (Rate/12) × n(n+1)/2
Compound: Total = Monthly × [(1+r)^n - 1] / r💡 How It Works
- •A savings account is a financial product where you deposit a fixed amount monthly and receive principal plus interest at maturity.
- •Simple interest: Interest is calculated for each monthly deposit based on the remaining term. Most bank savings accounts use this method.
- •Compound interest: Monthly interest is added to principal and becomes the base for next month's interest calculation.
- •Interest taxation: Standard tax 15.4% (income tax 14% + local tax 1.4%), Reduced tax 9.5%, Tax-free 0%.
- •Tax-free savings: Available for specific government programs and policies.
- •Reduced tax rate is available at certain financial cooperatives up to a specific limit.
❓ FAQ
Q. Which is better, simple or compound interest?
A. Compound interest is more advantageous, but most bank savings accounts use simple interest. Under the same conditions, compound interest yields slightly higher returns.
Q. How is the 15.4% standard tax calculated?
A. Interest income is subject to withholding tax: 14% income tax plus 1.4% local tax (10% of income tax).
Q. How can I get tax-free savings?
A. Tax-free savings are typically available through government policy programs. Check eligibility requirements and apply through participating financial institutions.
Q. What is the reduced tax rate?
A. A preferential rate of 9.5% available at credit unions and financial cooperatives, typically with a per-person limit.
Q. What if I withdraw early?
A. Early withdrawal typically results in a much lower penalty rate instead of the contracted rate. Try to maintain until maturity if possible.