For most people, investing means either purchasing shares or investing in the property market. With these forms of investment, there are various risks with the most obvious one being the uncertainty of housing prices or the share market. If you are looking to invest in a high-interest term investment the power of compound interest can be very beneficial.
Compound Interest explained
So what really is compound interest? Compound interest is the process of accumulating interest payments not only on your investment but also earning interest on your interest. For example, if you put $10,000 into a high-interest savings account with an interest rate of 4% p.a*, you will receive $400 over the course of the first year. You will then be able to earn even more interest as your term investment continues to grow. The table below shows a snapshot of how you could earn over $2,167 over a 5-year period with one of our APS Savings high-interest term investments.
The best part is you can just watch it grow more and more every year. We have many clients who choose to set up an APS Savings high-interest term investment for their children or grandchildren so that they can accumulate a substantial investment over time. With an initial investment of $10,000, by setting up a term investment that grows until your child’s 21st birthday, you could earn over $12,000 interest. This shows the potential accumulating power of compound interest.
This is not a bank product, it is an unlisted deposit note. No independent assessment has been made about the risk to investors losing any of their principal investment. Applications for deposit notes can only be made on the Investment Application Form which accompanies the prospectus issued by APS Savings Ltd. Please read the prospectus carefully before deciding whether to make an investment.
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