What is this Armenian deposit calculator?

This is a free compound interest calculator and savings growth calculator for Armenian bank deposits, available on Saving.am. You can estimate how your savings grow over time by entering your initial deposit, monthly contributions, annual interest rate, and term. It supports AMD, USD, and EUR and includes tax, early withdrawal penalties, and the deposit guarantee limit.

What is compound interest and how does it work?

Compound interest means you earn interest on your principal plus on previously earned interest. When the bank pays interest (e.g. annually, quarterly, or monthly), that interest is added to your balance and itself earns interest in the next period. Reinvesting earnings this way makes your savings grow faster over the long term than simple interest. This calculator shows the full compound interest effect for Armenian bank deposits.

Which currencies does the Armenian deposit calculator support?

The calculator supports three currencies: Armenian dram (AMD), US dollar (USD), and euro (EUR). Interest rates and early withdrawal penalties differ by currency (e.g. higher rates often for AMD). The 16,000,000 AMD deposit guarantee limit applies to AMD deposits per depositor per bank; foreign currency deposits may have different guarantee rules. You can switch currency in the bar above the calculator.

How often is interest paid on Armenian bank deposits?

Interest can be paid annually, semi-annually, quarterly, or monthly, depending on the deposit product. More frequent payment (e.g. monthly) means interest is compounded more often, which can slightly increase your total return compared to annual payment. Use the "Interest Paid" control in the calculator bar to choose the frequency; the calculator then applies the correct compound interest formula for your scenario.

Is interest on bank deposits taxed in Armenia?

Yes. Interest income from bank deposits in Armenia is subject to a 10% tax. The calculator applies this rate and shows you gross interest (before tax), tax amount, and net interest (after tax). Your final balance and savings growth projections are based on net interest, so you see the real amount you keep. Tax rules may change; results are for estimation only.

What is the deposit guarantee limit in Armenia?

The Deposit Guarantee Fund of Armenia protects deposits up to 16,000,000 AMD per depositor per bank. If a bank fails, you are guaranteed to recover up to that amount in AMD. This calculator warns you when your projected balance exceeds 16 million AMD so you can consider splitting savings across multiple banks to stay fully covered. The limit applies to AMD deposits; foreign currency coverage may differ.

What happens if I withdraw my deposit early?

Early withdrawal usually incurs an interest rate penalty. For AMD deposits the calculator uses a typical penalty of 2%; for USD and EUR it uses 1.5%. Your balance is recalculated as if you had earned the lower (penalty) rate from the start, so you may receive less than the projected balance. Use the "Early withdrawal" section in the Calculator tab to see the impact of withdrawing at a specific month.

How do I use the Goal Planner?

The Goal Planner tab helps you work backwards from a target amount. You can find: (1) how many years it takes to reach your savings goal with a given rate and monthly top-up; (2) the initial deposit you need to reach the goal in a set number of years; or (3) the monthly contribution needed to reach the goal in a set time. Set your target amount, interest rate, and optional existing monthly contribution, then choose the mode that matches your question.

Can I compare two deposit scenarios?

Yes. The Compare tab lets you set up two different deposit scenarios (initial amount, interest rate, monthly top-up, term, and interest payment frequency) side by side. You see the final balance and net profit for each, so you can compare different banks, rates, or strategies. This is useful to see how a higher interest rate or more frequent compounding affects your savings growth.

Where do the bank interest rates in the calculator come from?

The calculator includes indicative interest rates for several Armenian banks (e.g. Evocabank, Ameriabank, Inecobank, Araratbank, and others) and a market average, typically updated to a recent period (e.g. Feb 2026). You can select a bank from the list or choose "Custom Rate" to enter your own rate. Rates change over time; always confirm current terms with the bank. This tool is for estimation and comparison only, not a guarantee of offered rates.

Is this calculator financial or investment advice?

No. This Armenian deposit calculator and compound interest calculator is for informational and educational purposes only. It helps you estimate savings growth and compare scenarios but does not constitute financial, tax, or investment advice. Bank terms, interest rates, and regulations change; always verify with your bank and consider professional advice for important decisions.

Compound Interest Explained for Savers

Compound interest is one of the most powerful ideas in personal finance. Put simply: you earn interest on your initial deposit, and then you earn interest on that interest. Over time, this "interest on interest" effect can significantly increase your savings compared to simple interest, where you only earn on the original amount.

Simple vs compound interest

With simple interest, a 10% annual rate on 1,000,000 AMD always pays 100,000 AMD per year—only the principal earns. With compound interest, the first year you earn 100,000 AMD and it is added to your balance; the second year you earn 10% on 1,100,000 AMD (110,000 AMD), and so on. Each time the bank pays or credits interest, that amount becomes part of the balance that earns in the next period.

Frequency of compounding

The more often interest is paid and added to the balance, the stronger the compounding effect. Annual payment means one addition per year; quarterly means four; monthly means twelve. So a 10% rate paid monthly will yield slightly more by the end of the year than 10% paid once at the end, because each monthly payment starts earning interest in the following months. Our article on interest payment frequency goes into more detail.

Try it in the calculator

Use the Saving.am calculator and switch between "Interest paid" options (annual, quarterly, monthly) with the same rate and term. You will see the final balance and net interest change as the compounding frequency changes.

Long-term impact

Over many years, the difference between simple and compound interest becomes large. That is why starting early and leaving money to compound, and adding regular contributions when possible, can build substantial savings. Remember that interest on Armenian bank deposits is subject to 10% tax, so the calculator shows net (after-tax) results. For more on tax, see how deposit interest is taxed in Armenia.

Understanding compound interest helps you set realistic goals and compare deposit products fairly using tools like the Saving.am calculator.

Compound Interest Explained for Savers

Simple vs compound interest

Frequency of compounding

Long-term impact

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