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The rate of return you receive depends on where you save or invest your money and your savings goal. Below are examples of rates of return you could receive from different savings vehicles for different savings goals. These rates of return are estimates. For the current actual rate of return your money can earn, contact the financial institution (bank, credit union, mutual fund company, etc) where you plan to save or invest your money. Remember, rates of return are not guaranteed and will go up and down with changes in the stock market, interest rates, etc. Investments with higher rates of return also have higher risk, which means the possibility that you might lose money is higher.
Examples of possible rates of return by vehicle and savings goal:
Short Term Savings (saving for a bicycle or computer) At home in a piggy bank - 0% Savings account at a bank or credit union - 3% Certificate of Deposit at a bank or credit union - 5% |
Intermediate Term Savings (saving for college or vacation) Certificate of Deposit at a bank or credit union - 5% U.S. Savings Bond - 5% Mutual Fund - 6-8% |
Long Term Savings (saving for a house or retirement) Mutual Fund - 8-10% Stocks - 8-10% |
* The accuracy and applicability of this calculator is not guaranteed, actual values may vary slightly. |
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