Monthly savings for £75,000 in 5 years
Two scenarios — zero interest vs 5% AER.
Short answer
£1,250/month cash, or £1,103/month in a 5% AER account.
Breakdown
- Total months: 60
- Cash-only plan: £1,250 × 60 = £75,000
- 5% AER plan: £1,103/month (compound growth does some of the work)
- Interest earned over 5 years at 5%: ~£8,820
Other rates on the same target
- 3% AER (typical easy-access): ~£1,160/month
- 4% AER (competitive easy-access): ~£1,131/month
- 7% (long-run equity tracker): ~£1,048/month
Weekly & daily equivalents
- Per week (cash): ~£289
- Per day (cash): ~£41
- Per week (5% AER): ~£255
If you can only save less
Saving £875/month instead — 70% of the target rate — still reaches roughly £52,500 in 5 years (cash) or £52,500 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. For balances above the £85,000 FSCS limit per institution, spread across providers.
Inflation-adjusted target
At 3% long-run inflation, £75,000 in 5 years' time is worth roughly £64,696 in today's money. To preserve real purchasing power you'd actually need to hit £86,946 in 5 years — about £199/month extra on the cash plan. A 5% AER account broadly keeps pace with inflation; a 3% account does not.