How long does it take to save £10,000?

The short answer: saving £250 a month, it takes about 3 yrs 2 mths to reach £10,000 with 4% interest. At £500 a month it takes about 1 yr 8 mths; at £100 a month, about 7 yrs 3 mths. To get there in one year you need to save about £818 a month.

Time to save £10,000 by monthly amount

Interest helps more the longer you save. On £100 a month, it saves you about 13 months; on £1,000 a month, it hardly matters.

What to save for a deadline

How to find the money

• Save on payday: a standing order the day you are paid means you never see the money. Most people save more this way than by saving what is left.
• Save your pay rises: put part of every rise straight into savings before you get used to it. See what a £1,000 pay rise is worth.
• Clear expensive debt first: saving at 4% while paying 25% on a card loses money. See which debt to pay off first.
• Use windfalls: a tax refund, bonus or overtime month can jump you months ahead.
• Check your spending once: subscriptions, phone and energy contracts often hide £50 to £100 a month.

Where to keep it

• Regular savers: often pay the highest rates, but limit how much you can pay in each month, usually for a year.
• Easy-access accounts: lower rates but you can get the money whenever you need it.
• Cash ISA: interest is tax-free. On £10,000 at 4% you would earn £400 a year, inside most people's £1,000 allowance anyway; see tax on savings interest.
• Lifetime ISA: if the money is for a first home, the government adds 25% on up to £4,000 a year. See saving for a house deposit.

For money you need within a few years, cash is safer than investments, whose value can fall just when you need it.

What £10,000 can do

For many people £10,000 is a comfortable emergency fund: three to six months of essential spending. See how much to keep in an emergency fund. If you are already there, the same habit could build a house deposit or extra pension.

Regular saver accounts: what the rate really earns

Regular savers often advertise the best rates, but you pay in month by month, so the average balance is only about half the final amount. At 6% on £300 a month for a year, you pay in £3,600 and earn only about £117 of interest, not 6% of £3,600. They are still good value for a monthly saving habit, but compare them with an easy-access account if you already have a lump sum.

Ways to get there faster

• Pay yourself first: set a standing order for payday, so the money moves before you can spend it.
• Save rises and windfalls: put half of any pay rise, bonus or tax refund straight into the pot.
• Round-ups: many banks round card spending up to the nearest pound and save the change. It adds up to a few hundred pounds a year for many people.
• Cancel and redirect: when a phone contract, car loan or subscription ends, keep paying the same amount into savings.
• Check you get everything you're due: marriage allowance, tax refunds and benefits can add a useful boost.

Keeping it safe

Up to £120,000 per person in each banking group is protected by the Financial Services Compensation Scheme. Some brands share a licence, so two accounts with sister banks may count as one. Interest on £10,000 at 4% is about £400 a year, within most people's Personal Savings Allowance; see tax on savings interest.

Interest rates change. Examples assume a steady rate and no tax on interest.