What does saving a set amount each month earn?
You need: A monthly amount and a rate. Nothing you type leaves this page.
What do you want to know?
Interest earned
- You pay in (£200 a month)£2,400
- Interest£51.69
- You end with£2,452
Each monthly payment earns interest for the months it is in the account, worked out month by month rather than with a shortcut factor. Before any tax. Check whether tax applies to you.
The same money on the best rate we have verified
Santander, Regular Saver (Regular saver). £51.09 more than at 4% over a year. Checked against the provider's own page.
Tell me when a verified rate beats 4%
We check every rate on our shelf against the provider's own page. When one we have verified passes the rate you typed, you get one email with the account.
The working behind the figure, with the maths shown rather than a shortcut.
Why regular savers earn less than the headline suggests
A regular saver pays a high rate on money paid in monthly, up to a cap, usually for twelve months. The rate applies to each payment only for the months it has been in the account. £300 a month at 7% AER earns about £137 over the year: the first £300 earns for twelve months, the last for one. Averaged out, the money has been in the account for about six and a half months.
The calculator walks every month at the monthly rate that compounds to the AER, so the figure matches what a bank pays rather than a rule of thumb. Many accounts cap monthly deposits, often at £250 or £300, and pay a lower rate on anything left after the year, so check the account's own page before relying on a second year.
Regular saver or easy access?
If you already have a lump sum, an easy-access account earning on all of it can beat drip-feeding it into a regular saver, even at a lower rate. Put £3,600 into the lump-sum mode at the easy-access rate and compare with £300 a month at the regular-saver rate; the calculator shows both and the best verified rate for each.
Can I pay in a lump sum to a regular saver?
Usually not. Regular savers take a monthly amount up to a cap and often require an account with the same bank. The savings page shows each account's conditions beside its rate.
What happens at the end of the year?
Most regular savers mature after twelve months and move the money into a standard account at a lower rate. Set a reminder for the end date and move the money on; the rate you were getting does not carry on by itself.
Is the interest taxed?
It counts towards your Personal Savings Allowance like any other interest. Choose your tax band on the calculator for the after-tax line, or use the tax on savings checker for the full picture.
How much does saving £200 a month earn in a year?
About £52 at 4% AER and about £90 at 7% AER, before tax, because each payment is only in the account for the months after you make it. You pay in £2,400 either way, so the rate matters less than the headline suggests and the monthly cap matters more.