How to Use This Guide
This page contains 42 pre-calculated savings growth scenarios organized by initial deposit amount. Each table shows how a specific deposit grows over different time periods and APY rates. Click any future value to see the full year-by-year breakdown, rate comparisons, and detailed explanation for that scenario.
The scenarios cover deposits from $1,000 to $100,000 at APY rates ranging from 3% to 7%, with terms from 1 to 30 years. These represent the most commonly searched savings scenarios and the rates typically available from high-yield savings accounts and certificates of deposit (CDs).
Each individual page includes a year-by-year growth table showing exactly how your balance increases each year, comparison tables showing the same deposit at different rates and terms, and detailed explanations of how compound interest works for that specific scenario. Use these pages to plan your savings strategy, compare different account options, or understand how time and interest rates affect your money.
Understanding Compound Interest
All calculations on these pages use the compound interest formula: FV = P(1 + r)t, where P is your initial deposit, r is the annual interest rate as a decimal, and t is the number of years. This formula assumes annual compounding, which means interest is calculated and added to your balance once per year.
Compound interest differs from simple interest in one crucial way: with simple interest, you earn returns only on your original deposit. With compound interest, you earn returns on your deposit plus all previously earned interest. Over short periods, the difference is modest. Over long periods, it becomes dramatic. For example, $10,000 at 5% simple interest earns $500 per year, totaling $5,000 after 10 years. With compound interest, the same deposit earns $6,288.95 after 10 years, which is $1,288.95 more, because each year's interest earns its own interest in subsequent years.
The three factors that determine your savings growth are the amount you deposit, the interest rate (APY), and time. Of these three, time is the most powerful. Doubling your deposit doubles your interest. Doubling your rate roughly doubles your interest. But doubling the time more than doubles your interest, because the compounding effect accelerates with each passing year. This is why financial advisors consistently emphasize starting to save as early as possible.
When comparing savings accounts, always look at the APY (Annual Percentage Yield) rather than the nominal interest rate. APY accounts for the effect of compounding and gives you the true annual return. An account advertising 4.95% interest compounded daily has a different APY than one offering 5.00% compounded annually. The APY provides an apples-to-apples comparison between accounts with different compounding frequencies.