ETF vs savings account: savings is stable, ETFs aim for growth (with ups and downs) — here’s the simplest way to think about it:
If you’re choosing between an ETF (or index fund) and a savings account, the right answer depends on time horizon, risk tolerance, and your goal. Use the calculator to compare scenarios.
Open ETF vs Savings calculatorIf you’re deciding between an ETF (or index fund) and a savings account, the “best” option depends on your time horizon and your tolerance for ups and downs.
| Feature | Savings account | ETF / index fund |
|---|---|---|
| Risk | Low (rate can change) | Higher (market volatility) |
| Expected growth (long term) | Usually lower | Usually higher (not guaranteed) |
| Access to money | Easy access | Easy to sell, but price can be down |
| Best use | Emergency fund, short-term goals | Long-term wealth building |
Use the calculator to compare a high-yield savings rate against an ETF-style return. Try a conservative return (e.g., 5%) and an optimistic return (e.g., 8–10%) to see a range.
Keep exploring — these pages connect directly to calculators so you can run your own numbers.
Not always. Many ETFs track an index (like the S&P 500), and many mutual funds also track indexes. In this site’s calculators, “ETF return” is a shorthand for market-style investing returns.
Savings is usually lower risk, but your interest rate can change and inflation can reduce purchasing power over time.
For most people, 5+ years is a sensible starting point because markets can be volatile in the short term.
Use the ETF vs savings calculator with the same contribution amount and timeline, then test multiple return and savings-rate assumptions.