Monthly Savings Calculator

How does the regular saver calculator work?

To use our monthly savings calculator, or regular savings calculator, you simply need to fill in the following details:

• The amount you want to deposit in savings each month.
• How long you plan to keep adding money to the account.
• The interest rate of the savings account (assuming it’s fixed for the above period).

Once you’ve filled in the information, you can click “calculate” to see how much money you will have after the specified period.

This will include the money you’ve deposited each month as well as the interest it has earned.

How much should you save each month?

There’s no right or wrong answer as to how much you should save each month as it depends on your income, expenses and savings goals.

Firstly, you should work out how much you can afford to put into savings each month by creating a budget. This will allow you to see how much money you have left over once you’ve paid your essential expenses, such as rent or mortgage payments, utility bills and food shopping, and budgeted for other costs such as eating out.

From here, you can see how much you can afford to save each month and, if you want to deposit more money into savings, you can see if you can adjust any other areas of your budget accordingly.

Which savings account is best for monthly deposits?

If you’re planning to add to your savings each month, a regular savings account may be the most suitable option.

A regular savings account is specifically designed for savers who want to make regular monthly deposits. Many of these accounts set a minimum and maximum sum you can deposit each month, which can help savers to develop and stick to a regular savings habit.

Although they are often more restrictive than easy access accounts, as they may not allow withdrawals, for example, regular savings accounts typically pay a higher rate of interest. The interest rate may be fixed or variable, depending on the provider.

If you prefer a savings account with fewer terms and conditions and more flexibility, you could consider an easy access account or a notice account. These accounts allow you to add to your savings as and when you choose but, because they pay a variable rate of interest, the interest rate could change.

What if I want to deposit a lump sum?

If you don’t want to add to your savings every month but instead have a lump sum you want to put into savings, a fixed rate bond may be worth considering.

Fixed bonds pay a guaranteed rate of interest for a specified term and, because you can’t normally add to your savings after the initial opening period, they are particularly suited to those with a lump sum to deposit.

Bear in mind you won’t usually be able to access money in a fixed bond until the end of the term.

You can use our lump sum investment calculator to see the return you could get by depositing a lump sum into savings, factoring in the interest rate and the term of the account.