Savings Interest Calculator

See exactly how much interest your savings could earn — with or without monthly contributions. Updated with live UK rates.

Your Savings Details

Annual rate4.50% AER
0.1%10%
£
£0£1,000,000
£
£0£5,000/mo
yrs
1 yr30 yrs

Your Projected Returns

4.50% AER · 5 years
Final Balance
£25,947.07
after 5 years
Interest Earned
£3,947.07
+17.9%
total return
Total Deposited
£22,000.00
Monthly Gain
£65.78

Balance Growth Over Time

How your pot builds up, month by month

StartingContributionsInterest

Understanding rates

AER vs gross — what's the difference?

Banks quote two numbers. One is for comparing accounts; the other is what you might see on a statement. Here's how to read them.

AER

Use this to compare accounts

Annual Equivalent Rate — the standard way to compare savings. It folds in compounding so two accounts with different pay frequencies still compare fairly.

  • Best for picking the highest-paying account
  • What our calculator uses by default

Gross rate

Often on statements & ads

The headline rate before compounding is baked in. If interest is paid monthly, the gross figure alone can understate what you actually earn over a year.

  • Fine for reading your balance
  • Misleading if you use it to compare two accounts

Same headline rate, different outcome

£10,000 saved for one year at a quoted 4%

4% AER · paid monthly

£407.74

interest earned

4% gross · simple annual

£400.00

interest earned

Takeaway:when two accounts both say “4%”, check whether that's AER. The one compounding monthly typically pays more — even when the numbers on the tin look identical.

Saving strategies

Lump sum or monthly contributions?

Same rate, different approach — and the calculator above lets you model both. Neither is wrong; it depends what you're starting with.

Lump sum

  • Every penny earns interest from day one
  • Compound interest works on the full balance
  • Best when you already have savings to move

Needs a larger amount upfront

Monthly contributions

  • Build from salary without a big deposit
  • Creates a consistent saving habit
  • Each payment starts earning straight away

Each deposit earns for less time than a lump sum

Try it: run the calculator with only a starting balance, then add a monthly amount — over several years, regular contributions often close much of the gap.

Make your money work harder

Four ways to maximise UK savings interest

Once you know what you could earn, these steps help you keep more of it — tax-free where possible, and on the best rate you can find.

Use your ISA allowance first

Save up to £20,000 per tax year in a Cash ISA with zero tax on interest — regardless of your income.

Lock in with fixed rates

If you won't need the money for 1–5 years, fixed bonds often beat easy access — especially when rates may fall.

Know your tax-free allowance

Basic-rate taxpayers get £1,000 of tax-free interest; higher-rate £500. Over that? ISAs or our tax calculator can help.

Savings tax calculator

Keep comparing rates

The best account today may not be best in six months. Our live table updates as providers change their offers.

Compare live rates

Common Questions

Ready to Find the Best Rate?

Compare every UK savings account in real time — easy access, ISAs, fixed-rate bonds, notice accounts and more.

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