If you’d invested just £1 when the coins first went into circulation in 1983, you could have seen your investment grow more than tenfold according to investment firm M&G.
While leaving the coin in a change jar would have reduced pound’s buying power to just 32p, investing it in shares in 1983 would have seen its value rise to £11.66 by the end of 2016.
It may not sound much, but it highlights the gains that can be made with even small levels of investment.
“You can turn even a modest investment into a health pot of money if you are willing to accept an element of risk,” explains Ritu Vohora, investment director at M&G.
Investing in stocks and shares can be incredibly daunting, but if you approach it on a smaller scale, it can be a great way to maximise your savings.
Apps like Moneybox, for instance, help you invest your small change into shares with major companies, including Netflix and Disney. Simply connect your card to the app (that uses bank level encryption to keep your details safe), and Moneybox will round up your everyday purchases and help you invest the change.
Moneybox has three different tracker funds to help you get started – cautious, balances, and adventurous – so you can invest at a level you feel comfortable with.
Once you start to feel a little more confident with investing, you can look into a Stocks and Shares ISA from providers such as Hargreaves Lansdown to make your money go further. A Stocks & Shares NISA lets you invest up to £15,000 in shares each tax year without paying tax on any gains or dividends.
The important thing to remember when investing is that there is always an element of risk – no matter how safe you play it. So never invest more than you can afford, and always seek independent financial advice if you’re not sure what to invest in or whether you should invest at all.
To find the best investment option for you, use our comparison tool to compare Stocks and Shares ISAs quickly and easily.
Last updated: Wednesday, 22 March 2017
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