Does the miracle of compound interest still exist?

dsvd | 12:40 Sat 17th Oct 2009 | Personal Finance

3 Answers

My current ISA is paying 3.5% interest per month exempt of tax (yearly allowance £7,200)
The rate of inflation around 2% concerns me. The concept of paying yourself first as taught in
the famous book \" The Richest Man (Woman) in Babylon\".

Does this still apply? are there any places where you can receive these 8% plus returns?

Any thoughts welcome.

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dasherman

8% is not available at the moment for cash based savings as far as I know,but compound interest is still alive and well and as Einstein said,"The most powerful invention is compound interest.Those that understand it,earn it.Those that don't,pay it."

But shares are potentially a great place to get good returns. I have a S&S ISA and am invested in about 10 different funds,one has gone up over 40% since February.

dsvd

Question Author

Thanks for your answer dasherman. If you read this again can you tell me what type of S&S Isa you
have and who it is with. Thanks

dasherman

I have my S&S ISA through Hargreaves Lansdown,who are discount brokers. They enable you to invest in many different funds from different providers,usually with a reduced initial charge.

http://h-l.co.uk

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