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Compound Interest & How It Can Work For You?
10 years. Your return would be £ 11,046
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..
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.