How much of a difference will the rate make?
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Potential rate of return on various accounts

Amount you have deposited
Option 1
Option 2
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This tool shows the benefits of compounding over a range of saving periods. You enter an interest rate that you expect to earn on your deposits. The calculator assumes you are using a tax-advantaged account and that interest is compounded monthly.

Compounding is the process of adding interest to your original deposit and contributing the sum for another identical period. The more frequent the compounding is, the greater the future value. Similarly, the higher your savings interest rate, the greater the future value of your savings.
Compounding: Compounding adds the interest you earn on an investment and invests it, plus the original investment, for another period. The result is that you earn more interest and a higher rate of return.
Future value: The amount to which your investment grows in the future. For example, the future value of $100 invested monthly at 8% is $1,245 after 12 months.
Savings interest rate: The yearly interest rate you earn on your savings.
Tax-advantaged account: An investment account with tax-deferred or tax-exempt features that are used to save for retirement, college, and other educational expenses.
Compounding frequency: The frequency that a bank compounds interest on your deposit (e.g. daily, monthly, quarterly). The higher the frequency, the higher the interest rate.
Leadfusion CALCULATORS: Savings Email Results

The Northwestern Mutual Life Insurance Company, 720 E. Wisconsin Avenue, Milwaukee, Wisconsin, 53202-4797.

The calculators are provided by a third party service provider, Leadfusion, Inc. The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed by Northwestern Mutual. This calculator is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered by Northwestern Mutual, its affiliates or any other institution, nor does this calculator predict or guarantee the actual results of any investment product. The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your situation.

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