Saving vs Investing


Historically the stock market has offered much better returns than savings accounts over the long term. As a very rough guide, you could realistically expect at least 5% per year on average. It’s always better to use a modest percentage when planning, rather an ambitious one.

Let’s assume that you have £100 per month to put into a savings account or invest in the stock market. As you can see from the tables below, the difference over time is staggering.

Savings Account

10 Years20 Years30 Years

(Above figures calculated on an optimistic 2% interest rate)

Stock Market

10 Years20 Years30 Years

(Above figures calculated on 5% gain per year on average)

Even as little as £25 per month over 30 years (£9,000 total) could grow to £20,806 if you invested it into the stock market (£11,806 profit).

Obviously, these figures are not guaranteed but they are entirely realistic. There will be good years and bad years though, which is why it has to be considered a long-term strategy.

investing, saving

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