HOW WE WORK OUT THE “COMPOUND INTEREST GRAPH”
The graph above is based on future projections and is illustrative of the effects of compound interest. The projection assumes continuous contributions of $40 per month for 20 years with no breaks. The rate of return is 6.8% which is based on the 10 year return for Growth funds per Chant West, as at 31 July 2018. Investment earnings are added monthly. Student Super invests balances under $1,500 in the cash option, and balances above $1,500 in the Growth investment option. Performance is net of tax and investment earnings are added monthly. Fees are deducted before investment earnings and are deducted monthly. Balances below $1,000 are charged zero fees, balances between $1,000 and $4,999 are charged $39 p.a. and 0.99% of the account balance and balances above $5,000 are charged $78 p.a. and 0.99% of the account balance. See our fees page or the Student Super PDS for more information. Investment returns in the projection are taken to be consistent and are not reflective of Student Super’s investment performance or future investment performance. Inflation has not been taken into consideration.