An online tool provided by Axos Bank helps users determine the potential return on their deposit accounts. This tool typically requires inputs such as deposit amount, interest rate, and compounding frequency to calculate the annual percentage yield (APY). For example, a user might input a $10,000 deposit with a 4% interest rate compounded monthly to see the resulting APY and overall return after a specific period.
Understanding potential returns is crucial for effective financial planning. Such tools empower consumers to make informed decisions about where to deposit their funds by comparing yields across different accounts and institutions. Historically, calculating compound interest was a complex manual process. Digital tools have simplified these calculations, providing greater transparency and accessibility for individuals seeking to maximize their savings growth.
