Nutmeg calculations based on data from Bank of England, Bloomberg as at 20/2/15. Money market rates have been used to estimate future interest rates at monthly and yearly intervals up to 10 years ahead.
ISA rates are calculated monthly based on the historic premium of ISA deposit rates (excluding unconditional bonuses) over a money market rate. Lower and higher bands are estimated as a rate 0.75% below and above the expected rate in year two and 1% thereafter. Rates beyond ten years are assumed to equal the ten year rate.
Stocks & shares ISA returns
The projections are based on estimated long-term average returns for a portfolio of equities and government bonds, in different percentages depending on the risk level, using historic volatility of each asset class since 1986.
We have assumed a 1.0% annual management fee, which has been deducted from the projections shown. We also assume income is re-invested. This does not include effects of tax or inflation.
ISA rules apply. Forecasts are not a reliable indicator of future performance. Projected returns are based on past data under conditions of normal variability which may not remain the same in the future. View sources
As the cost of living rises, your money will be worth less, so savings have to do better than inflation in order to grow in real terms.
Long term goals
If you can invest for the long term, your money has a better chance of riding out short term volatility and earning returns. In fact, if you invest for 10 years, you have a 99.4% chance of making gains.
By reinvesting your returns, you’ll have compounding on your side. Learn about the power of compound returns.
Inflation measure used is the retail price index up to 1989 and the consumer price index (CPI) thereafter. Portfolio returns are calculated as a mix of UK gilts (50%), UK equities (35%) and International equities (15%) in sterling terms.