Savings Calculator — UK

See how much your savings will grow with regular monthly contributions — works for Cash ISAs, easy-access accounts, and fixed-rate bonds.

Savings Details

Initial Deposit

Monthly Contribution

Annual Interest Rate (AER)

Savings Period

Years

Compounding

Tax on Interest

Results

Enter savings details and click Calculate

Savings Calculator UK — See How Your Money Grows Over Time

Whether you're saving for a house deposit, building an emergency fund, or growing a long-term nest egg, this calculator shows you exactly how your savings will grow with regular monthly contributions and compound interest. Enter your current savings, monthly contribution, and interest rate to see projected growth year by year.

UK savings rates have risen significantly following Bank of England base rate increases. In 2024, the best easy-access Cash ISAs offer over 4.5% AER, fixed-rate ISAs over 5%, and top fixed-rate bonds up to 5.5% AER. The annual ISA allowance of £20,000 lets you shelter all of this growth from tax. Use this calculator to see what disciplined saving over 5, 10, or 20 years could achieve.

Types of UK Savings Accounts

UK savers have a wide range of account types, each with different rates, access rules, and tax treatment. Choosing the right account significantly affects how quickly your savings grow.

Easy-access savings accounts — withdraw anytime, variable rate. Best for emergency funds. ISA versions shelter interest from tax.
Fixed-rate bonds — lock money away for 1–5 years for a guaranteed higher rate. No early access without penalty. Not ISA-wrapped unless specifically a Fixed-Rate ISA.
Cash ISA — interest is completely tax-free. £20,000 annual allowance. Available as easy-access, fixed-rate, or regular saver formats.
Regular saver accounts — require monthly deposits (typically £25–£500/month), offer higher rates (sometimes 5%–8% AER) but limit total deposits and often restrict withdrawals.

How to Use This Calculator

Enter your Current Savings in pounds — your starting balance (e.g., £5,000).
Enter your planned Monthly Deposit (e.g., £300).
Enter the Annual Interest Rate (AER) — check current best-buy tables for your account type.
Set the Time Period in years (e.g., 10 years).
Click Calculate to see year-by-year growth, total deposits, and interest earned.
Try different rates to compare easy-access vs fixed-rate accounts.

Key Terms

AER (Annual Equivalent Rate): The UK standard rate for savings, showing the true annual return including the effect of compounding. All UK banks must quote AER. When comparing savings accounts, always use AER rather than the gross rate. A 4.8% gross rate paid monthly equals a 4.9% AER.
Personal Savings Allowance (PSA): UK taxpayers can earn a set amount of savings interest tax-free each year outside an ISA: £1,000 for basic-rate (20%) taxpayers, £500 for higher-rate (40%) taxpayers, and £0 for additional-rate (45%) taxpayers. With savings rates at 4%–5%, the PSA is exceeded at around £10,000–£25,000 in savings for higher-rate taxpayers — making Cash ISAs essential at that level.
FSCS Protection: The Financial Services Compensation Scheme (FSCS) protects UK bank and building society deposits up to £85,000 per person per institution (£170,000 for joint accounts). If a bank fails, FSCS pays out within 7 days. Always check that your savings provider is FSCS-authorised — this protection is a key reason to use regulated UK institutions.
NS&I (National Savings and Investments): A UK government-backed savings provider — deposits are 100% protected, not just up to the FSCS limit. Products include Premium Bonds (monthly prize draws instead of interest), Direct Saver, and historically, index-linked certificates. Popular for savers with large deposits who want total security.
Regular Saver Account: UK savings accounts that require a set monthly deposit and typically offer higher rates (5%–8% AER) in exchange. Offered by banks (often to current account customers) and building societies. Annual deposit limits apply (e.g., £300/month = £3,600/year maximum). Best combined with an easy-access account for larger lump sums.

Tips for UK Savers

Always use your £20,000 Cash ISA allowance before taxable savings — all interest is tax-free within an ISA, which matters more as savings rates rise and balances grow.
Check best-buy tables regularly on MoneySavingExpert or MoneySuperMarket — savings rates change frequently and switching can significantly increase your returns.
For an emergency fund, use an easy-access Cash ISA — your money is accessible but the interest is tax-free.
Consider Premium Bonds for large cash balances — the effective "prize rate" can be equivalent to a competitive savings rate, and all prizes are tax-free.
If you have over £85,000 to save, spread it across multiple FSCS-protected institutions or use NS&I for amounts above the FSCS limit.
For first-time buyers, a Lifetime ISA (LISA) offers a 25% government bonus on up to £4,000/year — effectively a 25% instant return before any interest.

Frequently Asked Questions

The best savings rate depends on how long you can lock your money away. Fixed-rate ISAs and bonds typically offer higher rates for 1–2 year terms (5%+ AER in 2024). Easy-access Cash ISAs offer competitive rates with full flexibility. Check MoneySavingExpert's best-buy tables for current top rates — these are updated frequently. Always prioritise FSCS-protected accounts from FCA-regulated providers.

A common UK approach: (1) keep 3–6 months of expenses in an easy-access account as an emergency fund, (2) use Cash ISA for savings goals within 5 years, (3) invest in a Stocks and Shares ISA for 5+ year goals. Keeping too much in cash long-term risks your savings losing value in real terms due to inflation. For retirement savings, maximise pension contributions first to benefit from tax relief.

Premium Bonds offer a prize fund rate equivalent to a savings rate (check NS&I's current prize rate). Prizes are tax-free and your capital is 100% secure (backed by HM Treasury). However, actual returns vary — you might win more or less than the headline rate in any year. For basic-rate taxpayers who haven't used their PSA, a Cash ISA or competitive savings account may offer a more reliable equivalent return. For higher-rate taxpayers with large balances, Premium Bonds become more attractive due to the tax-free prize treatment.

Every UK adult can save or invest up to £20,000 per tax year (6 April–5 April) across one or more ISAs. You can split the allowance across different ISA types (e.g., £10,000 in Cash ISA + £10,000 in Stocks and Shares ISA). Interest, dividends, and capital gains within an ISA are completely tax-free — forever, not just for the tax year. The allowance resets each year and unused allowance cannot be carried forward.

The Bank of England base rate influences (but doesn't directly set) UK savings rates. When the base rate rises, banks typically increase savings rates — though often more slowly than mortgage rates. When it falls, savings rates tend to follow. Variable-rate savings accounts and easy-access accounts change with the base rate; fixed-rate bonds lock in today's rate regardless of future changes. When rates are high (as in 2023–2024), fixing for 1–2 years can secure a strong return.

Yes — provided the bank is FCA-authorised and FSCS-protected (check register.fca.org.uk). UK online banks and challengers like Chase, Marcus, Atom Bank, and Paragon are fully regulated and FSCS-protected up to £85,000. They often offer better savings rates than high street banks due to lower overheads. Always verify FSCS protection before depositing — some savings apps are not directly FSCS-protected and instead hold funds with a partner bank.