How much could your money grow?
Saving alone will help you grow your money. Investing has the potential for much higher returns, but it also carries the risk that you could come away with less than you put in. When you’re deciding what to do with your money, it’s important to weigh up your wants and your needs, as well as your attitude to risk.
Savings vs Investment growth
The below example highlights the potential growth and risks of your savings or investment.
Start with lump sum of - £20,000
Aim of saving/investing for at least - 5 years
Savings value in 5 years
This includes £2,081 interest
Investment value in 5 years
Text only version
How we've worked this out
Firstly, the savings value is based on a 5 Year Fixed Rate Bond paying 2.00% gross/AER assuming the interest is paid and compounded annually.
The projected investment returns are based on a medium level of risk. It is a risk and reward category for people who are neither very risk averse or who have a desire to take a very high level of risk. It’s always important you invest in a way that suits your personal feelings to risk and reward. You might prefer to take a greater or lower level of risk than this example.
The projected figures have been calculated with the help of Moody’s Analytics using current forecasts and assumptions. However, these projections are for illustrative purposes only and are not a reliable indicator of future performance – actual returns could prove to be higher or lower than these examples.
Finally, these growth figures don't factor in:
- Any tax you might have to pay
- The impact of any initial or ongoing charges (investments only). For more information about how much financial advice could cost, please see our advice fees
- The potential increase or decrease in returns resulting from fund selection (investments only).
Risk and Reward
When you invest, there’s a chance you'll earn higher returns than you would by just saving. But on the other hand, there’s the risk that you could take out less than you put in. It’s not always an exact formula, but usually the higher the risk, the potential for greater reward. The key is to find a level of risk you’re comfortable with. And remember, our expert team can help you with all the information you might need.
If you’re not comfortable with the idea of risk, we could still help you grow your money. Take a look at our savings page for our latest accounts and rates.