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Compound Interest & How It Can Work For You?

  •   £10,000 invested at 1% pa compounded for 

         10 years. Your return would be      £ 11,046

  •   £10,000 invested at 10% pa compounded for

         10 years. Your return would be      £ 25,937

its not rocket science to see how compounding can work for you.

So you've learned how to save tax but what about compound interest?

It's no good saving tax if your investment is growing at just 2% per year.

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it..




Your question's

1. You'd like to know how to save £25,000  per person tax free?

2. How to Save for Your child's University fees? 

Your Answer is,

You can place £15,240 this tax year into an ISA.

This will rise in April 2017 to £20,000.

You may not be aware that you can also receive up to £1000 per year in interest tax free using your Personal Savings Allowance.

So on a £10,000 investment at 10% your income would be tax free for basic rate taxpayers.

Total Tax Efficient Savings before interest and growth  £25,240.