1. What is the Future Value Formula?

The Future Value formula calculates the total value of regular savings with compound interest over time. It helps investors understand how their regular contributions can grow with compounding interest.

2. How Does the Calculator Work?

The calculator uses the Future Value formula:

Where:

• \( FV \) — Future Value (GBP)
• \( PMT \) — Periodic Payment (GBP per period)
• \( r \) — Annual Interest Rate (decimal)
• \( n \) — Compounding Periods Per Year (unitless)
• \( t \) — Time in Years (years)

Explanation: The formula accounts for regular payments and compound interest, showing how savings grow over time with the Nationwide 6.50% interest rate.

3. Importance of Future Value Calculation

Details: Calculating future value helps in financial planning, understanding investment growth, and making informed decisions about regular savings plans.

4. Using the Calculator

Tips: Enter periodic payment in GBP, annual interest rate (default 6.50%), compounding periods per year (default 12 for monthly), and time in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What is the Nationwide regular saver interest rate?
A: The calculator uses a default rate of 6.50% per annum, which is Nationwide's current regular saver interest rate.

Q2: How often is interest compounded?
A: Typically monthly (n=12), but you can adjust this based on your specific savings account terms.

Q3: Can I use this for other interest rates?
A: Yes, simply adjust the interest rate value to match your specific savings account rate.

Q4: What's the minimum payment period?
A: There's no minimum - the calculator works for any positive time period, though results are more meaningful for longer periods.

Q5: Are there any fees or taxes considered?
A: This calculation doesn't account for potential fees or taxes on interest earnings. Consult a financial advisor for complete planning.