Understanding LISA interest rates: a comprehensive guide
Understanding LISA interest rates is crucial for individuals looking to make informed d...
The 72 Rule to double your money
This tells you how long it will take for your money to double. Divide 72 by the interest rate or rate of return you are using or earning, and it gives you the number of years it will take for your money to double in value.
Transcript
The 72 rule to double your money.
This tells you how long it will take for your money to double.
Divide 72 by the interest rate or rate of return you’re using or earning and it gives you the number of years it will take for your money to double in value.
Say the rate of return is 6% then your money will double in 12 years.
72 / 6 = 12
If the interest rate is 4%, it will take you 18 years to double your money.
72 / 4 = 18
If the interest rate is 2%, it will take you 36 years to double your money.
72 / 2 = 36
Mathematically, it should use 69.3 but 72 is good enough and much nicer to work with.
Today, most High Street banks are paying between 1% and 1.5% on savings accounts which means it could take you around 50 years to double your money.
So you might be better off looking for a better home for your money.
