Project how your money grows over time. Compare simple vs compound interest, model fixed deposits, money market funds, T-Bills, and SACCO deposits. All in Kenyan Shillings.
Adjust any field to see how it changes your final balance.
The gap between contributions and balance is your interest at work.
Same principal, same rate, same time period — but compound interest grows much larger because the interest itself earns interest.
Compound earns you KSh 0 more
| Year | Starting balance | Contributions | Interest earned | Ending balance |
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Where you put your money matters as much as how much you save. Here's a quick reference for common Kenyan savings products and their typical 2026 returns.
Albert Einstein reportedly called compound interest "the eighth wonder of the world." Whether or not he actually said that, the math is real. With compound interest, your money grows on top of money it has already earned, creating exponential rather than linear growth.
Two friends save KSh 5,000 monthly at 12% MMF rate. One starts at age 25, the other at age 35. Both stop at 60.
Just 10 extra years of saving — the same monthly amount — produces nearly KSh 23 million more. That's the magic of starting early.
The same money at the same rate grows slightly more if it compounds more frequently. KSh 100,000 at 12% for 10 years:
Daily vs monthly is barely a difference. Monthly vs annually is meaningful over long periods. Most banks compound monthly; most MMFs compound daily. T-Bills and T-Bonds typically pay simple interest unless you reinvest.
Simple interest is calculated only on your original deposit. Compound interest is calculated on your deposit plus all the interest already earned. Over time, compounding produces dramatically larger returns. For example, KSh 100,000 at 10% per year for 10 years grows to KSh 200,000 with simple interest, but to KSh 259,374 with compound interest — almost KSh 60,000 more from the same starting point.
As of 2026, typical rates are: regular savings accounts 1-4% per year; fixed deposits 7-12% depending on amount and bank; money market funds 11-14%; 91-day T-Bills 12-15%; SACCO deposits 10-13% via dividends; M-Shwari lock savings 4-6%. Money market funds and fixed deposits generally beat regular savings accounts by a wide margin.
It depends on the product. Most Kenyan savings instruments compound automatically — MMFs, savings accounts, fixed deposits with reinvestment. Use the compound option for those. T-Bills and T-Bonds typically pay simple interest unless you reinvest the coupon payments. Use the simple option if you'll take the income as cash rather than reinvest it.
More frequent compounding earns slightly more. Daily compounding beats monthly, monthly beats quarterly, quarterly beats annually. The difference is small for short periods but adds up over decades. Most Kenyan savings accounts compound monthly; MMFs typically compound daily.
No, it shows nominal returns (what your account balance will literally be). Real returns — what your money will buy — are lower because of inflation. Kenya's inflation has averaged 5-7% in recent years, so subtract that from your nominal rate for a rough sense of real growth.
No, the calculator shows pre-tax returns. In Kenya, withholding tax of 15% applies to interest from MMFs, fixed deposits, and most T-Bills. T-Bonds with maturities over 10 years are tax-exempt. SACCO dividends are taxed at 5% withholding. To estimate after-tax returns, multiply your interest rate by 0.85 before entering it.
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