See how your savings could grow over time with regular contributions and compound interest. Plan your financial future with confidence.
Final Balance
£16,631
Total Deposited
£13,000
Interest Earned
£3,631
| Year | Total Deposited | Interest Earned | Balance |
|---|---|---|---|
| 1 | £2,200 | £72 | £2,272 |
| 2 | £3,400 | £201 | £3,601 |
| 3 | £4,600 | £390 | £4,990 |
| 4 | £5,800 | £642 | £6,442 |
| 5 | £7,000 | £959 | £7,959 |
| 6 | £8,200 | £1,344 | £9,544 |
| 7 | £9,400 | £1,800 | £11,200 |
| 8 | £10,600 | £2,331 | £12,931 |
| 9 | £11,800 | £2,940 | £14,740 |
| 10 | £13,000 | £3,631 | £16,631 |
Tax Note: Interest earned in a standard savings account may be subject to income tax. Basic rate taxpayers have a £1,000 Personal Savings Allowance, while higher rate taxpayers have £500. Interest earned in an ISA is always tax-free. This calculator does not deduct tax from the projected returns.
A quick overview of the main types of savings accounts available in the UK and their typical rates as of early 2026. Rates vary between providers, so always shop around.
| Account Type | Typical Rate | Access | Tax-Free? |
|---|---|---|---|
| Easy Access | 3.5% - 4.5% | Instant | No* |
| Cash ISA | 3.5% - 4.5% | Instant | Yes |
| Fixed Rate Bond (1yr) | 4.0% - 5.0% | Locked | No* |
| Fixed Rate ISA (1yr) | 4.0% - 5.0% | Locked | Yes |
| Regular Saver | 5.0% - 6.0% | Limited | No* |
| Notice Account (90 day) | 4.0% - 4.8% | 90 days | No* |
* Subject to Personal Savings Allowance (£1,000 for basic rate, £500 for higher rate taxpayers).
This savings calculator uses the compound interest formula to project how your money could grow over time. Compound interest means that each year, you earn interest not only on your original deposit and contributions, but also on all the interest that has already been added to your account. This "interest on interest" effect becomes increasingly powerful over longer time periods.
The calculator takes four inputs: your initial lump sum deposit, a regular monthly contribution, the annual interest rate (AER), and the number of years you plan to save. It then calculates the balance at the end of each year, showing you exactly how much of your final balance comes from your own deposits and how much comes from interest earned.
One of the most important lessons in personal finance is that time in the market beats timing the market. The same principle applies to savings. Someone who starts saving £100 per month at age 25 will have significantly more at age 65 than someone who starts saving £200 per month at age 35, even though the late starter contributes more in total. This is entirely due to the extra years of compound interest.
The best savings account for you depends on when you need access to your money. If you might need it at short notice, an easy-access account or Cash ISA is appropriate. If you can lock your money away for a fixed period, a fixed-rate bond will typically offer a higher interest rate. For most UK savers, maximising your ISA allowance (£20,000 per year for 2026/27) should be a priority, as all interest earned within an ISA is completely tax-free.
It is important to consider inflation when evaluating your savings growth. If your savings account pays 4% interest but inflation is running at 3%, your real return (the increase in your purchasing power) is only approximately 1%. Over long periods, inflation can significantly erode the value of cash savings, which is why many financial advisers recommend considering investments (such as stocks and shares ISAs) for long-term goals of five years or more.
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