If you’re looking at parking your money in a bank for any appreciable return, you’re going to be disappointed. 7% is a moderately conservative expected return rate especially given a 45 year time horizon. The boring S&P 500 has a historical rate of return of 9% to 11%.
I’m not, I’m British, I think the highest bank interest rate here available to anyone is 4, maybe just under 5. I was just after comparisons. Thank you though.
Bank interest rates will never be a path to wealth. At most they help your money stay even with inflation, but usually not even that. This is a reliable low risk way to park money that might npbe needed on short notice, such as an emergency fund
investments might make you wealthy, over a very long time, assuming prudent choices. However usually risk is inversely proportional to reward: you can also lose a lot very fast, or you might only make middlemen wealthy. Investing is a huge topic area with all sorts of sometimes conflicting advice.
However looking historically there has never been a, was it decade, where the SP500 stock index lost money. The most reliable way for most people to raise their status might be:
start with your first job and put something aside
continue putting something aside for your working life
invest In an index fund of a Broad market stock index, such as SP500 or FTSE
leave it there, rain and shine. Timing doesn’t work but time does
Your 4% and 5% across the pond are about the same here stateside for what are considered “high yield” savings accounts (government protected) or money market accounts (private-based protection). These rates are largely tied to US Treasury Bill rates which echo what you’re seeing on your side too.
If you’re looking at parking your money in a bank for any appreciable return, you’re going to be disappointed. 7% is a moderately conservative expected return rate especially given a 45 year time horizon. The boring S&P 500 has a historical rate of return of 9% to 11%.
I’m not, I’m British, I think the highest bank interest rate here available to anyone is 4, maybe just under 5. I was just after comparisons. Thank you though.
Bank interest rates will never be a path to wealth. At most they help your money stay even with inflation, but usually not even that. This is a reliable low risk way to park money that might npbe needed on short notice, such as an emergency fund
investments might make you wealthy, over a very long time, assuming prudent choices. However usually risk is inversely proportional to reward: you can also lose a lot very fast, or you might only make middlemen wealthy. Investing is a huge topic area with all sorts of sometimes conflicting advice.
However looking historically there has never been a, was it decade, where the SP500 stock index lost money. The most reliable way for most people to raise their status might be:
Your 4% and 5% across the pond are about the same here stateside for what are considered “high yield” savings accounts (government protected) or money market accounts (private-based protection). These rates are largely tied to US Treasury Bill rates which echo what you’re seeing on your side too.