Monthly savings for £15,000 in 3 years
Two scenarios — zero interest vs 5% AER.
Short answer
£417/month cash, or £387/month in a 5% AER account.
Breakdown
- Total months: 36
- Cash-only plan: £417 × 36 = £15,012
- 5% AER plan: £387/month (compound growth does some of the work)
- Interest earned over 3 years at 5%: ~£1,068
Other rates on the same target
- 3% AER (typical easy-access): ~£399/month
- 4% AER (competitive easy-access): ~£393/month
- 7% (long-run equity tracker): ~£376/month — but equities are not appropriate for a horizon under five years
Weekly & daily equivalents
- Per week (cash): ~£96
- Per day (cash): ~£14
- Per week (5% AER): ~£89
If you can only save less
Saving £292/month instead — 70% of the target rate — still reaches roughly £10,508 in 3 years (cash) or £10,500 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 3-year horizon, a blend of cash ISAs and short-dated gilts/bond funds is sensible. Equities are higher risk on a sub-five-year window but a small allocation can lift the average return.
Inflation-adjusted target
At 3% long-run inflation, £15,000 in 3 years' time is worth roughly £13,727 in today's money. To preserve real purchasing power you'd actually need to hit £16,391 in 3 years — about £39/month extra on the cash plan. A 5% AER account broadly keeps pace with inflation; a 3% account does not.