Practical guide
Understanding savings account comparison — compare starting balance
Everyday editorial team · GEOINNOVATION CO., LTD · Published · Updated
What this calculation is for
A savings-account comparison puts balances, deposits, yields and recurring fees on the same timeline. A small APY difference can be outweighed by a monthly account fee, especially at modest balances.
How the method works
Both accounts start with the same principal and monthly contribution schedule. Each uses its own assumed APY, while the specifically labeled account fee reduces the applicable contribution stream. The displayed model uses: Calculate monthly growth and contributions separately for each account, then subtract fees.
A worked example
For an illustrative savings account comparison scenario, use Starting balance: 10000 $; Monthly deposit: 300 $; Account A APY: 4.5 %; Account B APY: 3.75 %; Monthly fee for account A: 0 $; Comparison term: 3 years. The modeled higher projected account balance is $22,936.02. These are example assumptions, not current prices, official benefit amounts or personalized advice.
Assumptions and real-world differences
Rate tiers, promotional expiration, minimum balances, fee waivers and taxes are not looked up. Do not enter a monthly fee again if you already reduced the deposit by that fee. Rates and fees are held constant. Tax effects and promotional terms are excluded.
Comparing two starting balance assumptions
The baseline and alternative calculations change starting balance while keeping the remaining model inputs the same. This isolates that particular assumption rather than comparing two completely different plans. Read both detailed outcomes and the B-minus-A difference in the headline’s units. A larger number is not automatically better: a larger cost and a larger savings balance have opposite interpretations.
Reproduce this tool’s example
These fixed example inputs are independent of edits you make above. Enter them in this tool to reproduce the result, then replace them with your own assumptions.
- Starting balance
- 10,000 $
- Monthly deposit
- 300 $
- Account A APY
- 4.5 %
- Account B APY
- 3.75 %
- Monthly fee for account A
- 0 $
- Comparison term
- 3 years
- Alternative starting balance
- 12,500 $
Scenario B result: $25,788.94
Scenario A: $22,936.02. Higher projected account balance.
- Scenario A main result: $22,936.02
- Scenario B main result: $25,788.94
- Numeric difference (B − A), in result units: 2,852.92
Frequently asked questions
- Is the larger projected balance a bank recommendation?
- No. Access, deposit protection, account requirements and future terms also matter.
- Which inputs should I check before using this savings account comparison estimate?
- Check starting balance, monthly deposit, account a apy, account b apy, monthly fee for account a, comparison term. Match each field’s unit and time period, then compare the detailed rows rather than treating the headline alone as the complete answer.
- Can I also change other assumptions in the alternative?
- This one-factor comparison deliberately holds them fixed. Use the two-scenario version when rates, costs, timing or several household inputs all differ.