ETF vs savings account

This page helps with popular searches like “ETF vs savings account” and “index fund vs high-yield savings”. Use the calculator below to compare outcomes across different timelines.

Use this ETF vs savings account calculator to compare an index fund / ETF-style return against a savings (or high-yield savings) interest rate. It’s a simple way to see the trade-off between potential growth and stability over different time horizons.

ETF vs savings comparison illustration

More comparisons & examples

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Compare investment over time

ETF projected final value: $
Savings projected final value: $

Difference: $

Growth chart

This chart shows your projected end‑of‑year balance using monthly compounding.

Want to understand the compounding maths? How compound interest really works →

FAQ

Why might an ETF outperform a savings account?

Historically, diversified market investments have often returned more than cash savings over long periods — but they also come with volatility and risk.

Is the ETF return guaranteed?

No. ETF returns fluctuate. This calculator uses your chosen return rate as an assumption so you can compare scenarios.

Why does the gap become bigger over time?

Because compounding amplifies the difference between two rates. The longer the time horizon, the more rate differences matter.

Does this include ETF fees or taxes?

No. Fees and taxes can reduce real-world returns. Use this as a directional comparison rather than an exact forecast.

What’s a reasonable way to use this page?

Try a conservative ETF return assumption and compare multiple timelines (10, 20, 30 years). For compounding basics, see How it works →

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