Savings Calculator
See how your savings can grow over time with compound interest. Plan for your financial goals with UK-specific rates.
Your Savings Details
Your Savings Projection
Growth Over Time
| Year | Start Balance | Contributions | Interest | End Balance |
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Savings Tips
- Use your ISA allowance (£20,000 for 2025/26) for tax-free growth
- Compare easy access vs fixed rate accounts for better rates
- Consider a Lifetime ISA for first-time home purchase or retirement
UK Savings Guide 2025/2026
Cash ISAs
Tax-free savings up to £20,000 per year. Current rates: 3.5% - 5.2%
Stocks & Shares ISA
Invest in markets tax-free. Historical returns: 5-8% but capital at risk.
Fixed Rate Bonds
Lock your money for 1-5 years for higher rates. Current: 4.5% - 5.5%
Lifetime ISA
25% government bonus up to £1,000/year. For first homes or age 60+.
Frequently Asked Questions
What's the difference between AER and gross rate?
AER (Annual Equivalent Rate) shows what you'd earn if interest was compounded annually. Gross rate is before tax. This calculator uses AER for accurate comparisons.
How much interest can I earn tax-free?
Basic rate taxpayers: £1,000. Higher rate: £500. Additional rate: £0. Interest in ISAs is always tax-free regardless of amount.
What's a realistic savings rate in the UK?
Easy access accounts: 3-5%. Fixed rate bonds: 4-6%. Regular savers: 5-7% (limited amounts). Stocks & Shares ISAs: 5-8% historically but variable.
How does inflation affect my savings?
If inflation is higher than your interest rate, your purchasing power decreases. For example, 4% interest with 2% inflation gives 2% real return.
Should I use an ISA or regular savings?
If you exceed your PSA (£1,000/£500), use an ISA. Also use ISA for long-term growth to avoid future tax on accumulated interest.
How often is interest paid?
Varies by account: monthly, annually, or at maturity. More frequent compounding (monthly) gives slightly higher returns than annual.
Important: This savings calculator provides estimates based on the information you enter. Actual returns depend on the specific account terms, interest rates (which can change), and your tax situation. Business Outstanders is not a financial advisor. Always check terms with your provider.