公制 英制
🌐 ZH
한국어 English 日本語 中文
🇬🇧 英國專用計算機

🇬🇧 英國 複利計算機

計算您的儲蓄和投資如何通過複利增長。

最終餘額
—
總供款
—
總利息收入
—
實際年利率
—
本金增長
—
供款增長
—
指南

了解更多

01

The Power of Compound Interest in UK Savings

Compound interest means earning returns on both your principal and accumulated interest, creating exponential growth over time. A £10,000 investment at 5% annual return grows to £16,289 after 10 years (£6,289 gain), demonstrating how time multiplies wealth. Adding £200 monthly contributions transforms this dramatically—the same 10-year period yields £41,207 total (£10,000 initial + £24,000 contributions + £7,207 compound interest). The Rule of 72 estimates doubling time: divide 72 by interest rate (72÷5=14.4 years to double at 5%). UK Cash ISAs currently offer 4-5% interest tax-free on up to £20,000 annual deposits. Monthly compounding accelerates growth compared to annual compounding—£10,000 at 5% monthly compounding yields £10,511.62 vs £10,500.00 annually compounded (£11.62 extra). Premium Bonds offer 4.4% prize rate but no guaranteed returns, while NS&I Direct Saver guarantees 4.75% with government backing. Fixed-rate bonds lock money for higher rates: 2-year fixes offer 4.7-5.0%, 5-year fixes reach 4.5-4.8%.

02

UK Investment Accounts for Compound Growth

Stocks & Shares ISAs provide tax-free compound growth on investments up to £20,000/year, sheltering dividends and capital gains from tax. FTSE All-Share historically returned 7.2% annually (including dividends), turning £10,000 into £20,096 over 10 years. Adding £500 monthly to S&S ISA at 7% returns accumulates £88,571 after 10 years (£60,000 contributed + £28,571 growth). Vanguard LifeStrategy 80% Equity Fund charges 0.22% annually, offering worldwide diversification across 7,000+ companies. Junior ISAs let parents invest £9,000/year for children tax-free until age 18. Investing £200/month from birth to 18 at 6% returns builds £82,870 university fund. Self-Invested Personal Pensions (SIPPs) add 25% tax relief—£800 contribution becomes £1,000 in pension (basic-rate taxpayer). £300 monthly SIPP contribution for 30 years at 6% grows to £301,354. Dividend Allowance (£500 tax-free in 2025/26) and Capital Gains Allowance (£3,000) provide additional tax-efficient compound growth opportunities outside ISAs.

03

Maximizing Compound Returns: Frequency Matters

Compounding frequency significantly impacts returns—monthly compounding beats annual compounding over long periods. £10,000 at 6% for 20 years: annually compounded = £32,071, monthly compounded = £33,102 (£1,031 extra). Daily compounding adds minimal benefit over monthly in practice. Most UK savings accounts compound monthly or annually, while investment returns compound continuously through reinvested dividends. Reinvesting £400 quarterly dividends from £20,000 FTSE 100 investment (4% yield) grows portfolio faster than taking dividends as cash income. Effective Annual Rate (EAR) reveals true return accounting for compounding frequency. 5% AER with monthly compounding = 5.12% actual annual return. Credit cards compound daily (typical 23% APR = 25.9% EAR), making debt expensive. Mortgage overpayments benefit from compound savings—paying £100 extra monthly on £200,000 mortgage at 4% saves £19,742 interest and clears mortgage 4 years early.

04

Common Compound Interest Mistakes to Avoid

Inflation erosion reduces real purchasing power of nominal returns. 5% interest with 3% inflation = 2% real return. £10,000 growing at 5% for 10 years reaches £16,289 nominally but only £12,144 in today's purchasing power after inflation. Equity investments historically outpaced inflation long-term—FTSE All-Share returned 5.1% above inflation annually since 1899. Regular savings accounts offering 1-2% interest lose purchasing power when inflation exceeds rates. Withdrawing compound growth early destroys long-term wealth creation. High fees devastate compound returns—2% annual fund management fee vs 0.2% low-cost index fund on £100,000 over 30 years at 7% gross returns: high fee leaves £432,194, low fee leaves £700,918 (£268,724 difference). Early pension withdrawal before age 55 triggers 55% unauthorized payment charge plus income tax, eliminating compound growth potential. Start investing immediately rather than waiting for "perfect time"—£200/month from age 25-35 then stopping outperforms £200/month from age 35-65 due to extra compound years.