Savings Goal
Calculator 2025

Easy access savings rates in 2025 are broadly in the 4–5% range. Fixed rate accounts and cash ISAs can offer similar or slightly higher rates. Rates change frequently — use a comparison site like MoneySuperMarket or Martin Lewis's MoneySavingExpert for the latest deals.

In a cash ISA interest is tax-free. In a standard savings account, interest is tax-free up to your Personal Savings Allowance — £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Above those amounts, regular account interest is taxable. For most savers the PSA covers their interest, but higher earners benefit more from an ISA.

Compound interest means you earn interest on your interest, not just your original balance. Over time this accelerates growth significantly. A £10,000 pot growing at 5% for 10 years becomes £16,289 with annual compounding — £6,289 of which is interest. Starting early makes a big difference.

Most financial advisers recommend keeping 3–6 months of essential living expenses in an easily accessible savings account. If you're self-employed or have irregular income, 6–12 months is often advised. Keep your emergency fund separate from savings you're building toward a goal.