The Saving Plan Calculator calculates the total accumulation in a savings account, at the regular deposit frequency requested, in respect of the savings plan parameters entered, namely initial amount, regular deposit amount, term and interest rate.
As done in most financial calculators, all months are assumed to be of equal length. In reality, many savings accounts accrue on a daily basis leading to a varying number of days' interest dependent on the number of days in the particular month.
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
The calculator assumes that deposits and interest crediting occurs at the same frequency. This frequency is an input parameter entered by the user - namely annually, monthly, fortnightly or weekly.
The amounts of total accumulation and interest earned are rounded to the nearer cent. In practice, the accuracy in these amounts is dependent on the rounding protocols used for interim amounts of interest credited to the account.
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Information such as interest rates quoted and default figures used in the assumptions are subject to change. This calculator does not take into account any change in the cost of living between the time of this calculator being used and the future time inputted into it. This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. You should consider obtaining advice from a financial services licensee before making any financial decisions.