Saving16 minMorrow+

Saving, compound interest and inflation

Saving is not only about the balance shown by a bank. Time, interest, tax, access and inflation all affect what your money can eventually do.

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Interest can help money grow, while inflation reduces what each pound can buy.

If savings earn 4% while prices rise 3%, spending power grows only modestly before considering tax. A large-looking rate is not the whole story.

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