UK Savings Goal
How to save £20,000 in 7 years at 3%
To reach a goal of £20,000 in 7 years with a 3% interest rate (compounded monthly), here's how much you'd need to save each month.
Monthly deposit
£214.27
Total deposited
£17,998.34
Interest earned
£2,001.66
Where to get 3% on your savings
UK easy-access savings accounts currently pay up to around 5% AER, with fixed-rate bonds going slightly higher. For tax-free growth, use a Cash ISA (up to £20,000/year) before a standard savings account.
Faster to your goal
- Increase your rate — a 1% higher rate can save you years.
- Set up a standing order on payday so saving happens automatically.
- Use a Stocks & Shares ISA for long horizons (10+ years) to chase higher returns.