Savings interest calculator

Promoted

Bank of Queensland Future Saver Account - 14 to 35 years

Bank of Queensland Future Saver Account - 14 to 35 years

Promoted

5.50 % p.a.

max rate

0.05 % p.a.

standard variable rate

• Maximum rate: 5.5% p.a.
• Standard variable rate: 0.05%
• Monthly fees: $0

Bank of Queensland Future Saver Account - 14 to 35 years

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Ongoing, variable 5.5% p.a. when you deposit $1,000+ per month and make 5 eligible transactions. Available on balances up to $50,000.

Savings interest calculator

• Assumptions and disclaimer

  The savings calculator is a model, not a prediction, and these results should be used as an indication only. It does not predict things that may change the savings amount e.g.: change in interest rate, change in savings frequency.

  The savings calculator above has the following assumptions:

  • Interest earned is reinvested back into the account
  • The interest rate is unchanged for the savings period
  • Interest compounds monthly
  • Each year is divided into 12 months of equal length, and you make regular savings payments at the start of each month.

How do I calculate interest on my savings?

The money in your savings account benefits from compound interest to help it grow. This means you will earn interest on your interest.

For example, let's say you had a balance of $100,000 in your account with a savings interest rate of 5.00% p.a. The 5.00% p.a. rate will be applied to your balance which results in $5000 interest. However, this is an annual rate, while savings accounts pay interest monthly. So, dividing the annual amount of interest earned by 12 leaves you with $416.66 in interest for the first month.

Now, let's pretend that you don't add any more money into the account other than your initial $100,000 deposit. Going into month 2 you now have a balance of $100,416.66. When calculating your interest for the month, the rate is applied to your whole balance (including the interest payment!). This time, your monthly interest payment is $418.40 - slightly more than in month 1.

This continues month on month, and as you're earning more interest each month, your balance is getting bigger. Because your balance is getting bigger, you're earning even more interest.

Compound interest allows you to grow your money without even depositing anything extra. However, by making regular additional deposits yourself you'll also be increasing the amount of interest you earn each month.

Current savings account interest rates

Motivated to start saving? Take a look at the current rates on offer.

Frequently asked questions

• What is simple interest?

  Simple interest is different to compound interest, because it only calculates interest on your initial deposit. With simple interest, you can't earn interest on your interest so your balance will not grow at nearly the same rate. Term deposits work on simple interest.

• How much interest can I earn on $50,000?

  How much interest you can earn depends on the interest rate offered by your savings account. The best savings rates currently are around 5% p.a.

  Let's say you saved $50,000 for 12 months at a 5.00% interest rate. If you made no further deposits to the account and held the month there, in 12 months you'd earn $2,558.09 in interest.

• Where can I put my money to earn the most interest?

  It's a good time to be looking at savings accounts as the interest rates are all going up. You can compare high interest savings account rates to find which account will offer you the most interest, based on your savings style.