EyeOnYourCredit

Global information guide

Savings Interest Calculator — Effective Annual Rate and Growth

Savings accounts may quote a nominal rate, an effective annual rate (sometimes called AER or APY), or both. This calculator shows how compounding changes the real yearly return and how a balance could grow.

Local context: Credit reporting, consumer rights, record-retention periods, score displays, lending decisions, products, taxes, and consumer protections vary by country and provider. This content is general information, not legal, financial, tax, debt, credit, insurance, investment, or personalised advice. Check the process and terms that apply where you live.

Illustrative calculation

Illustrative scenario only: not financial advice, a lender decision, an offer, a quote, a credit-score forecast, or a guarantee of savings, repayment, approval, eligibility, tax treatment, or any financial outcome.

Nominal rate versus effective annual rate

A nominal rate is the headline yearly figure before compounding. When interest is added monthly or daily, interest itself earns interest, so the effective annual rate is slightly higher. Many countries require an effective rate to be shown so accounts can be compared on a like-for-like basis, though the name used varies.

What this illustration leaves out

Real accounts may have variable rates, introductory bonuses, withdrawal limits, fees and tax on interest, all of which depend on the provider and where you live. Use the result to understand how the pieces fit together, then check the actual terms of any account.

A practical next step

Try a few different scenarios to see which inputs change the result most, and check the actual terms that apply where you live.