See exactly how much interest your savings could earn — with or without monthly contributions. Updated with live UK rates.
How your pot builds up, month by month
When comparing savings accounts, you'll see two figures quoted: AER and gross rate. Understanding the difference helps you choose the account that actually pays more.
AER (Annual Equivalent Rate) is the standardised rate that accounts for compounding. It shows what you'd earn if interest were paid and compounded once per year, regardless of how often the account actually pays it. This makes it the fairest way to compare accounts side by side.
Gross rate is the rate before compounding is applied. If an account pays monthly, the gross monthly rate is slightly lower than AER/12 — because each month's interest is calculated on a growing balance.
Quick example
A £10,000 deposit at 4% AER with monthly compounding earns £407.74 after one year. At 4% gross (simple interest, annual), it earns exactly £400. The AER account pays more, even though the headline numbers look similar.
Two common savings strategies produce different outcomes even at the same interest rate.
Lump sum
Monthly contributions
Try the calculator above with just a starting balance versus with a monthly contribution added — you'll often find that consistent monthly contributions significantly outperform a one-off deposit over a longer period.
Use your ISA allowance first
Each tax year you can save up to £20,000 in a Cash ISA and pay zero tax on the interest — regardless of how much you earn. Cash ISA rates have improved substantially since 2023 and now rival many standard savings accounts.
Consider fixed-rate bonds for money you won't need
Fixed-rate savings accounts typically offer higher rates in exchange for locking your money away for 1–5 years. If rates are high and expected to fall, locking in now can protect your returns.
Don't ignore your Personal Savings Allowance
Basic-rate taxpayers can earn up to £1,000 in savings interest tax-free each year. Higher-rate taxpayers get £500. If your interest would exceed this, prioritise ISAs or check our savings tax calculator.
Keep comparing — rates change frequently
Savings rates shift with the Bank of England base rate and competition between providers. The best rate today may not be the best rate in six months. DepositScout's comparison table is updated in real time so you can always see where the best rates are.
Compare every UK savings account in real time — easy access, ISAs, fixed-rate bonds, notice accounts and more.
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