how much in british pounds will i have to save every month to have 300,000 pound in 25 years?

Question

I know I would have to put 1000 pound away every month, but i thought someone might know of a specific account based on 3 - 8% interest, meaning the ammount i would have to save every month would be substantially less. Does anyone know of such an account and how much I would have to save.

Answer 1

£1000 a month.

There are 12 months a year and you're going to be saving for 25 years. 12 x 25 = 300, the total number of months you'll be saving for.

You need to accumulate £300,000 and have 300 months in which to do it - 300,000 ÷ 300 = 1000.

Answer 2

It depends greatly on how you invest it in the interim. If you put it under your mattress, exactly 1000. If you are able to earn about 8% per year, compounded, probably about 650-700, but that's an (educated) guess by me. I didn't do any calculations except for in my intelligent mind. :D