Compare ยท side by side
Same money. Three very different endings.
Put the same amount aside every week and watch where it lands โ a savings account, a term deposit, or an index fund.
Put aside each week$40
Over how long10 yrs
๐ฆ
Savings account
~3% p.a.
$24,194
after 10 years
You put in$20,800
Growth on top+$3,394
๐
Term deposit
~5% p.a.
$26,798
after 10 years
You put in$20,800
Growth on top+$5,998
๐
Index fund
~8% p.a.
$31,299
after 10 years
You put in$20,800
Growth on top+$10,499
๐
The gap between safe and growth
Over 10 years, the index fund ends up $7,105 ahead of a plain savings account โ that difference is compounding doing the heavy lifting.
Illustrative estimates in NZD using indicative long-run returns (savings ~3%, term deposit ~5%, index fund ~8% p.a.). Assumes regular weekly investing; ignores fees, tax and market ups and downs. Higher returns come with more risk and the value of investments can fall. General info to help you learn โ not personalised financial advice.