Monthly savings for £15,000 in 5 years
Two scenarios — zero interest vs 5% AER.
Short answer
£250/month cash, or £221/month in a 5% AER account.
Breakdown
- Total months: 60
- Cash-only plan: £250 × 60 = £15,000
- 5% AER plan: £221/month (compound growth does some of the work)
- Interest earned over 5 years at 5%: ~£1,740
Other rates on the same target
- 3% AER (typical easy-access): ~£232/month
- 4% AER (competitive easy-access): ~£226/month
- 7% (long-run equity tracker): ~£210/month
Weekly & daily equivalents
- Per week (cash): ~£58
- Per day (cash): ~£8
- Per week (5% AER): ~£51
If you can only save less
Saving £175/month instead — 70% of the target rate — still reaches roughly £10,500 in 5 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 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.
Inflation-adjusted target
At 3% long-run inflation, £15,000 in 5 years' time is worth roughly £12,939 in today's money. To preserve real purchasing power you'd actually need to hit £17,389 in 5 years — about £40/month extra on the cash plan. A 5% AER account broadly keeps pace with inflation; a 3% account does not.