Regular saver accounts pay headline-grabbing rates — but you only earn that rate on each month's deposit for the months it's invested. Enter your monthly amount and rate to see the real interest and final balance.
Fixed monthly deposit · 12-month term
A regular saver advertises an annual rate, but you don't have the full balance in the account all year. Your first deposit earns interest for all 12 months; your last earns it for only one. On average, your money is invested for about half the year — so the interest you actually earn is roughly half what the headline rate would suggest on the total you save.
| Monthly deposit | Saved over year | Interest at 7% |
|---|---|---|
| £100 | £1,200 | ~£45 |
| £200 | £2,400 | ~£91 |
| £300 | £3,600 | ~£136 |
| £500 | £6,000 | ~£227 |
Most regular savers run for 12 months and then drop to a low rate or mature into an easy-access account. The smart move is to sweep the matured pot into the best available home — a top easy-access account, a fixed-rate bond, or a tax-free ISA — and start a fresh regular saver. Project longer-term growth on the compound interest calculator.
Roughly half the headline rate on the total saved, because you build the balance up over the year. £300 a month into a 7% saver earns about £136 over 12 months — not £252.
The rate is annual but your full balance is only in for the last month. Each deposit earns interest for fewer months than the one before, so the effective return is about half.
It can count towards your Personal Savings Allowance (£1,000 basic-rate, £500 higher-rate). Most stay within it; an ISA version keeps interest tax-free regardless.
It depends on the account. Some allow free withdrawals; others penalise them or close the account. Always check the terms before committing to a monthly amount.
