Even a small difference in the interest you are paid on your savings can add up over time. Use this calculator to see how different savings rates can impact your savings
strategy. Making deposits at the start of each
month, compared to the end of the month, can also make a difference.
Glossary Terms
Starting amount
The starting balance or current amount you have invested or saved. If you haven't started saving yet, set the amount to "$0".
Additional contributions
The amount that you plan on adding to your savings or investment regularly.
Years
The total number of years you are planning to save or invest.
Annual percentage yield (APY)
The annual rate of return for each savings account. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2008, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 9.7% (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, from June 1982 through June 1983. The lowest 12-month return was -39%, which happened twice, once from September 1973 to September 1974 and again from November 2007 to November 2008. Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
*This Web site contains tools and calculators that are hypothetical in nature and used for illustrative purposes only. They do not reflect the actual performance of any Touchstone mutual fund or variable annuity.
