Interest rates are stubbornly low for most of us, with the banks paying little or nothing on the money that we keep with them – around 2% is usually about the best you can get without tying the money up for well over a year. And then you have to pay tax on that!
However, depending on your circumstances, it may be possible to get a far better rate of return on your money.
Here are a few examples of the Return on Investment (ROI) that you may be able to get, based on my experience (both personally and from dealings with clients):
- index-linked bonds: 9% ROI
- offset mortgage: 10%
- solar panels: 20%
- pay off personal loans: 15%
- pay off credit cards: 30%
- tax planning advice: 300%*
- avoid ‘pay day loans’: 1,000%+!
- your own business development: 10,000%+!! **
* e.g. if K&H do the work on a 25% contingent fee basis
** based on a client who spent £2,400 on advice on pricing and other business development ideas, and saw their profits go up by well over £200k, to a large extent because of that advice (or so I would like to think anyway….)
I have made various assumptions here, including ‘grossing-up’ the ROI figures for tax that doesn’t need paying on the income/savings in most cases above. But, as you can see, you may have far more options than just depositing the money with the bank or other traditional savings/investments – and without taking huge risks with the capital.
Can you add to my list?
P.S. I stress that this blog post does not constitute investment advice. As always, you need to seek advice from a suitably qualified financial adviser before making any investment decisions.