Compound Interest Calculator

Discover how much your money can grow over time with our compound interest calculator.

How to Calculate Your Savings Growth Using Compound Interest

  • Starting Savings Balance: This is the initial sum you've already accumulated towards your total savings goal. It serves as the foundation of your future savings.
  • Annual Percentage Yield (APY): The amount of interest your savings will earn over time, expressed as a yearly percentage.
  • Contribution Frequency & Amount: Specify how often (monthly, semi-monthly or annually) you plan to add to your savings and the designated amount for each contribution.
  • Timeframe (Year/Month): Input the number of years or months you'd like to reach your savings objective. For example, you might set a goal of saving $1,000 in one year.

The method for calculating CD interest vs a standard savings account is different.

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*Contributions added to end of period.

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Starting Balance: $0.00
 

Total Contributions: $0.00
 

Total Interest Earned: $0.00
 

End Balance: $0.00

*Financial calculator is for illustrative purpose only. Information is provided as a self-help tool for your independent use and not intended to provide investment advice. Calculations are estimates and actual rates and results may differ. Results are not guaranteed.”

What Is Compound Interest?

Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods. This means that interest is earned on interest, leading to exponential growth over time. The frequency of compounding (e.g., annually, semi-annually, quarterly or monthly) significantly impacts the total interest accrued, with more frequent compounding resulting in faster growth. Essentially, the more frequent the compounding, the greater the potential for your savings to grow.

How Do I Calculate Interest on a Savings Account?

Savings account interest is typically calculated based on a method known as the daily balance method. The daily balance method calculation factors are broken down as follows:

  • Tracking Your Balance: Each day, the bank tracks your account balance.
  • Calculating the Average: For each day in the interest-earning period, the bank multiplies your daily balance by the daily interest rate (in decimal format). This daily interest amount is calculated independently for each day.
  • Interest Rate Application: At the end of the interest-earning period, the bank adds up all the daily interest amounts to get the total interest earned for that period.
  • Adding Interest: Finally, the bank adds the total interest earned to your account balance. This increases your account balance and becomes part of the calculation for the next interest-earning period.

Savings account interest calculation also depends on how frequently your bank calculates interest. Interest can be calculated daily, monthly or quarterly. The more frequently the calculation is made, the more often you will be paid interest payments. With Seacoast's Sail Into Savings account, you will receive automatic interest payments directly into your checking account.

How Does a Certificate of Deposit Work?

With a Certificate of Deposit (CD), you deposit a set amount of money for a fixed length of time, often six months to five years. Essentially, you're entering into an agreement to leave your funds untouched for the chosen period of time.

In exchange, the bank offers you a fixed interest rate return, which typically exceeds the rate you'd get from a regular savings account. CDs can also be beneficial for other reasons, including:

  • Predictable Growth: The fixed interest rate on a CD ensures you receive a predetermined level of return on investment.
  • Higher Earning Potential: CDs often boast higher interest rates than standard savings accounts.
  • Multiple Terms: CDs offer short and long-term options, so they can be customized to fit your financial needs.


Certificates of Deposit are a valuable asset for those seeking to capitalize on higher interest rates while keeping your initial investment safe. CDs also offer automatic renewals if you'd like to continue earning interest on your money.

However, keep in mind that CDs do have early withdrawal penalties, so make sure you will not need the money before your fixed term is over.

Transferring funds from your CD to another account is also not possible, so be sure to choose an accessible bank for your investment.

See Our Current CD Rates >

How Does a Savings Account Work?

Savings accounts provide a safe space for your money. Unlike investment accounts, you can easily deposit extra money and take it out when you need it. 

You start with an initial deposit. The bank pays you an interest rate on your balance over time, typically calculated based on the average daily balance maintained in the account. As your money sits in the account, your savings passively increase.

In the unlikely event of a bank failure, the Federal Deposit Insurance Corporation (FDIC) insures you up to $250,000 per account

How to Start Growing Your Savings

Happy couple sitting at a table with coffee cups and a computer reviewing their savings options

Building a secure financial future starts with a solid savings plan. This can include cutting back on spending, opening a savings account or investing in a CD.

Here are some impactful savings platforms you can take advantage of.

Savings Account

Savings accounts offer a safe and accessible place to keep your extra funds. Even small, regular deposits add up significantly over time.

They're ideal for building an emergency fund since the process of building one doesn't require a large cash deposit upfront.

They are also optimum for saving for short or medium-term goals, such as a vacation or a down payment on a car.

Certificate of Deposits (CDs)

Unlike other savings methods, CDs offer a chance to potentially grow your money faster with fixed, higher interest rates for for short- or long- term periods.

However, your money is locked away for the term length you choose, which can range from a few months to multiple years.

Early withdrawals can incur a penalty. Therefore, CDs are best suited for financial goals you know you won't need to reach immediately.

Money Market Accounts

Money market accounts are essentially savings accounts that pay slightly higher interest rates while allowing you to make a few transactions each month.

It bridges the gap between a traditional savings account and a checking account, offering additional interest on your balance over traditional savings accounts and access to your funds when needed.

By utilizing the Savings Growth Calculator, you can compare options and determine the best fit for your savings plan. The key is to start saving today.

Financial Goals FAQs

What Type of Account Is Best for My Financial Goals?

  • When comparing savings options, keep in mind that your best option will depend on your needs. If you're saving for short-term needs, consider a high-yield savings account or a money market account. For longer-term goals like buying a home or retirement, consider options like a certificate of deposit (CD) or an IRA for retirement.

Can I Open a Savings Account Online?

  • Yes, you can open a savings account online! Seacoast offers a convenient online application process. All you have to do is make sure to have some basic information readily available, such as your Social Security number, a valid ID and your residential address.

How Do I Set a Savings Goal?

  • Define a clear and specific goal, such as vacation funding, retirement or unexpected expenses. Determine the exact amount you need to save to meet that goal. Then, set a realistic timeframe to achieve your goal. This will give you all the information you need to start laying a savings foundation.