Where should I keep money I'm saving for a goal?

For goals within about five years, a high-yield savings account or CDs are usually recommended - the money is safe and earns interest. Investing is generally better suited to goals further out, since markets can drop in the short term.

Does interest really matter for short-term savings?

For short timelines the amount you save each month matters far more than the rate. But a high-yield account paying 4% instead of 0.5% still adds meaningful money on larger balances.

Savings Goal Calculator

Saving for a house deposit, emergency fund, car, or trip? Find the exact monthly amount that gets you there by your deadline.

Make your goal fund work harder

A high-yield savings account pays several times the average rate - on a $20,000 balance that's hundreds of dollars a year for zero extra effort.

Compare high-yield savings accounts

We may earn a commission if you open an account through this link. It never affects your rate.

How the monthly amount is calculated

Your existing savings grow at the interest rate you enter, and each monthly deposit earns interest for the months that remain. The calculator solves for the deposit amount whose future value, plus the growth of what you've already saved, exactly equals your goal on the target date.

Goal = Current × (1+i)ⁿ + Deposit × [ ((1+i)ⁿ − 1) / i ]

where i is the monthly interest rate and n the number of months. If your current savings alone will grow past the goal, the required deposit is zero - you're already done.

Frequently asked questions

How big should an emergency fund be?

Three to six months of essential expenses is the common guideline, kept liquid in a high-yield savings account. One month is a great first milestone.

Where should I keep goal savings?

For goals within ~5 years, high-yield savings or CDs - safe and interest-bearing. Longer-term money can be invested; see the compound interest calculator.

Does the interest rate matter much?

For short timelines the monthly amount dominates, but 4% vs 0.5% still adds up on bigger balances - it's free money for a one-time account switch.