Savings Withdrawal Calculator
If you are considering living off the savings you have at your disposal, you have found the right place - the savings withdrawal calculator will surely assist you excellently in answering any questions that may arise in such a case. The three potential concerns when you are about to begin withdrawing from a savings account are:
- How long will my money last?
- How much money can I withdraw?
- How much money will remain after a certain period?
We designed the present savings withdrawal calculator to find the answer to all the above questions. Moreover, you can also check how many times can you withdraw from a savings account. You can also follow the progress of your savings account balance in a dynamic chart or withdrawal schedule.
Read on to find our explanation of what is a savings account, what types of savings account are there, what is the difference between a checking and savings account, and how to withdraw money from a savings account.
If you are looking for a rather basic tool, check our simple savings calculator.
What is a savings account?
A savings account is a bank account where you can keep your money securely and earn some interest in the meantime. While banks typically offer a lower return on savings accounts (in the form of interest) than what you may earn on an investment, keeping your savings in banks usually minimizes your risk as most of the savings accounts are federally insured up to 250,000 dollars (in case of US) in the event of bankruptcy.
On the other hand, compared to a classic money box, your savings are less accessible than cash since banks tend to discourage you from withdrawing money by setting limits, penalties, or fees. Therefore, collecting your money in a savings account can be a safe way to save money that you don't intend to spend right away. To understand more on this topic, check out our savings calculator, savings goal calculator and savings interest rate calculator.
Types of savings account: what is the difference between a checking and savings account?
There are multiple types of savings account you can choose from depending on your financial needs.
1. Traditional or regular savings account
- This type of savings account is the most available to the general public.
- It's usually easy to open a regular savings account, even online.
- Banks typically pay lower interest rates than in the case of other savings options.
- While you can withdraw money with fewer restrictions in general than in the case of other products, additional fees may still apply for excess withdrawals.
2. High-yield savings account
- The offered interest rates or APY are typically higher compared to regular savings accounts.
- Online banks tend to charge fewer or lower fees, including monthly maintenance or excess withdrawal fees.
- You may not have access to your money via an ATM.
3. Money market accounts (MMAs)
- Rates are typically better than regular savings accounts.
- A higher minimum deposit may be required to open a money market account.
- Banks may charge a monthly fee for money market accounts.
4. Certificate of deposit account (CDs)
- CDs are time deposits, where you agree to leave your money in the account for a specific term (typically ranging between 30 days to 60 months). You can also check out our CD calculator.
- During that period, interest compounds (higher than usual), and when the CD matures you can withdraw your savings or roll it into a new CD.
- A good option if you don't want to immediately spend your savings, as banks can charge an early withdrawal penalty if you withdraw your savings before the maturity date.
- You can overcome this drawback by creating a CD ladder of multiple CDs with varying maturity dates.
5. Specialty savings account
- Feasible if you want to want to achieve a specific savings goal.
How to withdraw money from a savings account?
Now, let's review the most common ways how to withdraw money from a savings account.
- Get familiar with the withdrawal limits for your account by contacting the bank or visiting its website.
- In the United States, the Federal Reserve's Regulation D Requirements mean there is typically a federally enacted limit of six withdrawals per month. Still, your bank may have a different policy.
- This limit on withdrawals is one of the most considerable differences between savings and checking accounts.
- Access your account online to transfer money from your savings to your checking account - in this way, you can withdraw money without actual withdrawal since many banks consider these transfers rather than withdrawals.
- If that option is not available, ask your bank to link a checking account to your savings account.
- Use your debit card at an ATM to withdraw money from your savings account.
How to use the savings withdrawal calculator?
To find out how many times you can withdraw from a savings account or answer another savings-related question, you can use the savings withdrawal calculator:
As the first step, you need to select what you would like to know:
How long will my money last?
How much money can I withdraw?
How much money will remain after a certain period?
Balance of your savings — Set the current balance of your savings.
First withdrawal on — If you choose a future date, your current balance stated above will increase according to the average interest rate.
Length of withdrawals — Set the period through which you would like to withdraw money.
Withdrawal amount — The amount you are planning to withdraw monthly.
Annual interest rate — The average interest rate or APY on your savings.
Compounding method (
advanced mode) — The frequency of adding interest to the balance. If you give APY as the interest rate, choose yearly since APY is already adjusted for higher than yearly compounding.
Timing of withdrawals (
advanced mode) — At the end or the beginning of periods.
Growth rate of withdrawals (
advanced mode) — The percentage growth rate of your withdrawals over a year.
Remaining balance (advanced mode) — Set an amount if you want to have some money left at the end of the withdrawal period.
After setting the above parameters, you can immediately read the main results and see a summary table with all additional information. For example, you can learn how many withdrawals from savings you can make or whether it will be possible to live off savings.
You can also follow the progress of your savings account balance in a dynamic chart or withdrawal schedule.
You should consider the savings withdrawal calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are, despite our best effort, not exhaustive.
For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive useful feedback and advice.
|Number of withdrawals||276|
|Last withdrawal on||Nov. 08, 2051|
|Balance at first withdrawal||$110,519.99|
|Balance after last withdrawal||$0.00|