High Interest vs Easy Access Calculator
Gain from moving to a higher-interest account.
Compare your current easy-access savings interest vs a higher-interest account to see the annual gain from switching. Free educational tool.
What this tool does
This calculator models the annual interest difference between your current savings account and a higher-rate alternative. It takes your savings balance, current interest rate, and the rate offered by another account, then estimates how much extra interest you'd earn in a year by switching. The result shows the additional annual income in your currency, assuming the rates remain constant throughout the period. The size of your balance and the gap between the two rates are the primary drivers of this uplift. For example, moving a larger balance to an account with a modestly higher rate still produces meaningful additional income. The calculation uses simple annual rates and doesn't account for compounding within the year or fees associated with switching. This is an educational illustration of rate-difference mechanics and doesn't account for account terms, accessibility features, or other account-specific factors that might influence your decision.
Enter Values
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Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Most people leave savings earning below-market rates for years. 25,000 in a 1% easy-access account earns 250/year. Switching to a 4% equivalent earns 1,000/year — 750 extra for five minutes of paperwork. Rate comparison sites make this a trivial exercise once per year.
Quick example
With savings balance of 25,000 and current rate of 1% (plus offered rate of 4%), the result is 750.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Savings Balance, Current Rate, and Offered Rate. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the option with the lower calculated total changes.
What's happening under the hood
Annual rate gap × balance = annual extra interest. Simple calculation ignoring compounding within the year. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
How to use this beyond the first run
Re-run the calculation once a year. Life changes — pay rises, new expenses, interest-rate shifts — and the figure that looked right 12 months ago often isn't today. Annual recalibration keeps the plan honest.
What this doesn't capture
The calculation assumes a steady savings rate and a stable interest rate. Real saving journeys include emergencies, windfalls, and rate changes — especially in easy-access products. The figure is a direction of travel, not a guarantee.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the compound interest calculator, the savings calculator, and the savings account interest calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
Moving £25,000 from 1% to 4% interest generates 750.00 in additional annual earnings.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
This calculator computes the extra annual interest earned by comparing two savings rates applied to the same balance. It multiplies your savings balance by the difference between the offered rate and your current rate, expressed as a decimal. The result shows the additional interest generated over one year from switching accounts. The model assumes both rates remain constant throughout the year and applies simple interest rather than compound interest. It treats the rate difference as an annual percentage and does not account for compounding within the year, fees charged by either account, tax on interest earned, or changes to your balance over time. The calculation provides a straightforward comparison of rate differential impact and should be used alongside other account features when evaluating savings options.
References
Frequently Asked Questions
How often should I review rates?
Worth switching for small gaps?
Are headline rates reliable?
FSCS / deposit protection?
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