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Over 1000% return on your savings?

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.

4 Responses to “Over 1000% return on your savings?”

  1. Bob Harper says:

    Here are a few things which maybe covered in your business development ideas:

    – Developing business systems
    – Building relationships
    – Being a business angel

    It would be good to see some calculations.

  2. Andrew Gray says:

    Thanks Bob. I have emailed you some notes about the workings. BTW my estimate of Payday loan interest was very modest- actually quote 4214% APR on their website!!!! This equivalent to about 7000% for a 40% taxpayer.

  3. Bob says:

    If a business makes £200k from your advice why are they not paying 25% like the tax saving? Even if you said 50% tax you would have £25,000 being 25% of £100k clear profit.

  4. Andrew Scott says:

    Andrew I agree your rates on the pay day loans. I do not like to see too much government regulation but surely some is needed in this area? The cheapest payday loan is 1737% according to Money Supermarket, with used to have a minimum lending rate do we need a maximum lending rate

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