How much interest will I earn on £10,000 in a year?

At 4.5% AER, £10,000 would earn approximately £450 in interest over one year. The exact amount depends on compounding frequency.

AER (Annual Equivalent Rate) shows the total interest you would earn over a year, accounting for compounding. It is the standard way UK savings accounts advertise their rates.

Do I pay tax on savings interest?

Most people do not. The Personal Savings Allowance lets basic rate taxpayers earn up to £1,000 in interest tax-free, and higher rate taxpayers up to £500. Additional rate taxpayers have no allowance.

Savings Interest Calculator

See how your savings will grow with compound interest. Enter a lump sum, regular monthly deposits, and an interest rate to get a year-by-year breakdown.

What this calculator does

This calculator projects the growth of your savings over a chosen period, factoring in compound interest and regular monthly contributions. It provides a year-by-year breakdown and can estimate how long it takes to reach a target amount.

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