Saving £100,000 in 10 years
Two scenarios: zero-interest cash savings, and a 5% instant-access account.
Short answer
£833/month in cash, or £644/month in a 5% savings account.
How the numbers break down
- Zero interest: £833/month × 120 months = £100,000.
- 5% AER savings: £644/month — roughly £189/month less thanks to compounding.
- Per week (cash): ~£192.
- Per day (cash): ~£27.
How to stay on track
The two things that reliably kill a savings plan are (a) a single gap month that breaks the habit, and (b) raiding the pot for a non-emergency. Both are far less likely if the money moves automatically and sits somewhere slightly awkward to reach — a separate savings account at a different bank to your current account, with a standing order set for the day after payday.
If the monthly number feels tight, split it: a smaller amount (say £500/month) that you can sustain without fail is worth more than a larger pledge that collapses in month three. Raise the contribution every time you get a pay rise or clear a recurring cost — this is where the biggest long-term gains come from, not from picking a slightly higher-rate account.
Related calculators
If the rate is different
- At 3% AER (average easy-access): roughly £716/month.
- At 7% (typical fixed-term ISA or stock tracker long-term): roughly £578/month.
- With an annual lump sum instead of monthly: contribute £10,000/year into a 5% account and the target lands close on time.
Where to park the money
Short horizons (under 2 years) almost always belong in cash — easy-access or a short-term fixed-rate account. For 5+ year horizons, a Stocks & Shares ISA tracking global equities historically outperforms cash by 3–4% per year in real terms, though with real drawdowns in any given 12-month period. Match the vehicle to the horizon: a 1-year £100,000 target does not belong in the stock market.