Monthly savings for £100,000 in 5 years
Two scenarios — zero interest vs 5% AER.
Short answer
£1,667/month cash, or £1,470/month in a 5% AER account.
Breakdown
- Total months: 60
- Cash-only plan: £1,667 × 60 = £100,020
- 5% AER plan: £1,470/month (compound growth does some of the work)
- Interest earned over 5 years at 5%: ~£11,800
Other rates on the same target
- 3% AER (typical easy-access): ~£1,547/month
- 4% AER (competitive easy-access): ~£1,508/month
- 7% (long-run equity tracker): ~£1,397/month
Weekly & daily equivalents
- Per week (cash): ~£385
- Per day (cash): ~£55
- Per week (5% AER): ~£339
If you can only save less
Saving £1,167/month instead — 70% of the target rate — still reaches roughly £70,014 in 5 years (cash) or £70,000 at 5% AER. A smaller amount you sustain every month almost always outperforms a larger pledge that collapses in month four.
Where to keep this money
For a 5-year horizon, a Stocks & Shares ISA invested in a global equity tracker has historically outperformed cash by a wide margin over decade-long horizons. Cash drags the real return down once inflation is accounted for. For balances above the £85,000 FSCS limit per institution, spread across providers.
Inflation-adjusted target
At 3% long-run inflation, £100,000 in 5 years' time is worth roughly £86,261 in today's money. To preserve real purchasing power you'd actually need to hit £115,927 in 5 years — about £265/month extra on the cash plan. A 5% AER account broadly keeps pace with inflation; a 3% account does not.