Two ways to plan a savings goal
Use How long it takes if you know what you can save each month and want to see when you'll get there. Use How much to save if you have a deadline, such as a house deposit in five years, and want the monthly amount that gets you there.
Choosing the right rate
For goals within a few years, most people keep their money in cash savings, so use your savings account's rate. Over longer periods, investing may grow faster but can also fall in value, so use a cautious return and give yourself some slack.
Tips for reaching your goal sooner
- Automate it. A standing order on payday makes saving the default.
- Use tax-free accounts. In the UK, a cash ISA shelters interest from tax, and a Lifetime ISA can add a government bonus for a first home or retirement. Check the current rules on GOV.UK.
- Put windfalls to work. Adding a bonus or tax refund to your starting amount can cut months off the timeline.
Frequently asked questions
How much should I save each month for a house deposit?
Enter your deposit target, what you've saved, and your timeframe in How much to save. The calculator gives the monthly amount, including interest at the rate you enter.
Should I save or invest for a goal?
For goals under about five years, cash savings are usually safer, because investments can fall just when you need the money. For longer goals, investing may help, with more risk.
Does the calculator include tax on interest?
No. Interest in a cash ISA is tax-free. Outside an ISA, your Personal Savings Allowance may cover some or all of the interest, depending on your income.
What if my rate changes?
Savings rates change often. Re-run the calculator with your new rate to see the updated timeline.