1. What is the 1.45% Gross Interest Rate?

The 1.45% gross interest rate represents a fixed annual interest rate applied to savings accounts. This calculator helps you determine how much interest you'll earn on your principal amount over a specified time period.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal amount (initial investment)
• \( 0.0145 \) — 1.45% annual interest rate (expressed as decimal)
• \( T \) — Time period in years
• \( I \) — Interest earned

Explanation: The formula calculates simple interest without compounding, meaning interest is only earned on the original principal amount.

3. Importance of Interest Calculation

Details: Understanding how much interest your savings will earn helps with financial planning, comparing investment options, and setting realistic savings goals.

4. Using the Calculator

Tips: Enter your principal amount in dollars and the time period in years (can be fractions of a year). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this interest compounded?
A: No, this calculator uses simple interest which doesn't compound. Interest is calculated only on the original principal.

Q2: How does this compare to compound interest?
A: Compound interest would yield higher returns as it earns interest on both principal and accumulated interest.

Q3: Are taxes considered in this calculation?
A: No, this shows gross interest before any taxes or fees that may apply to your account.

Q4: Can I use this for partial years?
A: Yes, enter fractional years (e.g., 0.5 for 6 months, 0.25 for 3 months).

Q5: Is the interest rate guaranteed?
A: This assumes a fixed 1.45% rate. Actual rates may vary depending on your financial institution and account type.