Savings Account Interest Calculator
Estimate your future savings balance, total interest earned, and the power of compound growth on your initial deposit and regular contributions.
Project Your Savings Growth
Enter your initial deposit, monthly contributions, and expected interest rate to see how much your savings could grow over time.
Compound Interest Estimator
Forecast your savings balance with regular contributions.
How it Works
Understanding compound interest on savings
Initial Deposit
Your starting balance begins earning interest immediately based on the annual rate provided.
Regular Contributions
Your monthly deposits are added to the balance, and each contribution begins earning its own interest from the month it is deposited.
Compound Growth
Interest is calculated monthly on the entire balance (initial deposit + contributions + previously earned interest), accelerating your growth over time.
Final Projection
We sum the total contributions and the total compound interest to show your final projected savings balance at the end of the term.
UK Savings Account Types
A general overview of common savings products available in the UK and their typical features.
| Account Type | Access to Funds | Typical Use Case |
|---|---|---|
| Easy Access Savings | Immediate (usually up to 6 withdrawals/year) | Emergency funds or short-term goals where flexibility is needed. |
| Fixed Rate Bond | Locked for 1 to 5 years | Maximising interest on a lump sum you know you won’t need immediately. |
| Regular Saver | Monthly deposits only, often locked for 12 months | Building a specific savings habit with a higher bonus interest rate. |
| Cash ISA | Varies (Easy Access or Fixed) | Shielding your savings interest from UK Income Tax (up to £20,000/year allowance). |
| Notice Account | Requires 30 to 120 days’ notice | Earning a slightly higher rate than easy access in exchange for delayed withdrawals. |
Savings & Interest FAQ
Answers to the most frequently asked questions about savings accounts, compound interest, and UK tax rules.
Compound interest is calculated on your initial principal plus any accumulated interest from previous periods. The formula is A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years.
The gross rate is the basic interest rate applied to your savings before compounding. AER (Annual Equivalent Rate) shows what the interest rate would be if interest was added and compounded once a year, allowing you to easily compare different savings accounts.
Interest earned on savings is subject to Income Tax. However, most people benefit from the Personal Savings Allowance (PSA), which allows basic rate taxpayers to earn up to £1,000 in tax-free savings interest per year, and higher rate taxpayers up to £500. Interest within a Cash ISA is entirely tax-free.
A Cash ISA is a tax-free savings account where your money is held in cash and earns a fixed or variable interest rate. A Stocks and Shares ISA allows you to invest in the stock market tax-free, which carries more risk but potentially higher long-term returns.