We generally use a method called the Rule of 72 to show investors the benefits of better interest rate returns that we offer

The Rule of 72

The Rule of 72 is generally used by financial advisors to quickly determine how long an investment will take to double.

The Rule of 72 is used to quickly and approximately determine how long an investment will take to double.

It is as simple as dividing 72 by the annual rate of return an investment earns. The result is the number of years, approximately, it will take for your money to double, assuming the interest is compounded.

For example,  an investment of $20,000 that earns 2% per annum (interest compounded) will take 36 years to be worth $40,000 because 72/2 = 36 years.

The Rule of 72 can be used in the opposite direction to estimate the rate, if the amount of time is known.

For example, if you wanted to double $20,000 in 5 years, you would need to earn an interest rate of 14.4% because 72/5 = 14.4

However, this rule is just a quick and easy calculation to use, as higher interest rates and longer time frames cause the Rule of 72 to become less accurate.

By investing with us, through “bricks and mortar”, we can offer higher rates than most banks and index funds, to ensure you can double your money quicker.