Business Outstanders

Savings Calculator

See how your savings can grow over time with compound interest. Plan for your financial goals with UK-specific rates.

UK savings rates • Updated March 2026
UK Tax Year 2025/2026: Basic rate taxpayers can earn up to £1,000 in savings interest tax-free. Higher rate taxpayers: £500. Interest in ISAs is always tax-free.

Your Savings Details

£
£0 £25k £50k £100k
£
£0 £500 £1000 £2000
years
1 yr 10 yrs 25 yrs 50 yrs
% AER
0% 2.5% 5% 10%
Typical UK easy access savings: 3-5%, Fixed rate: 4-6%, Stocks & Shares ISA: 5-8% historically
Interest above your PSA (Personal Savings Allowance) is taxed at your income tax rate

Your Savings Projection

Future Value £16,470
Total Contributions £13,000
Total Interest £3,470
Effective Rate 4.5%
Maturity Date Mar 2035

Growth Over Time

Year Start Balance Contributions Interest End Balance

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+.

Personal Savings Allowance (PSA): Basic rate taxpayers: £1,000 interest tax-free. Higher rate: £500. Additional rate: £0.

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.