Long-Term Savings Calculator
Calculate your savings maturity amount with compound interest and yearly breakdown.
Understanding Long-Term Savings
Long-term savings accounts offer stable returns and capital protection, making them ideal for conservative investors seeking steady growth for retirement, education, or other long-term goals.
Key Features of Long-Term Savings
- Tax Benefits: Some accounts offer tax-deferred or tax-free growth
- Tenure: Typically 5+ years for best rates
- Investment Limit: Varies by account type
- Interest Rate: Often higher than regular savings accounts
- Risk: Generally low-risk when FDIC insured
- Liquidity: Some penalties for early withdrawal
How Compound Interest Works
Annual Interest = (Opening Balance + Deposits) × Interest Rate
Interest is compounded annually and credited at year-endThe power of compounding makes long-term savings particularly attractive. Even small regular investments can grow substantially over 10+ years.
Savings vs Other Investment Options
| Feature | Savings Account | CDs | Stocks |
|---|---|---|---|
| Risk Level | Very Low | Low | High |
| Returns | 2-5% | 3-5% | 7-10% avg (volatile) |
| Liquidity | High | Low | High |
| Best For | Emergency funds | Short-term goals | Long-term growth |
Who Should Use Long-Term Savings?
- Conservative investors seeking stability
- Those saving for specific future goals
- Parents saving for children's education
- Individuals building a retirement safety net
- Those wanting a low-risk allocation in their portfolio
Savings Strategies
- Automate contributions: Set up regular transfers
- Ladder maturities: For CD investments
- Maximize tax-advantaged accounts: Like IRAs or 401(k)s
- Review rates annually: Move funds for better returns
- Combine with investments: For balanced growth
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