How long for money to double

How Long Does It Take To Double Your Money In Singapore?

1 min read

The power of compound interest

This illustrates that at a higher interest % rate per year, you would require fewer years to double your money. In Singapore particularly, there are unique products like the CPF which also helps to support each individuals endeavour to grow his or her money.

How long for money to double

The beautiful rule of 72

You can see in the chart illustrated above, where the green numbers represent the number of years, and the red interest % represents the rate of return needed to double your initial capital.

It is compressed into this simple formula you can see here:

Rule of 72 Seedly

An example: What strategy to double $10,000?

Joe, 25 just graduated recently and has been working for over a year now. He has been reading up and is looking for ways to make his money work for him.

Step 1: Determine your investible cash

He has saved up $10,000 excess cash (outside of rainy day savings) and aims to invest all of this $10,000 into the market today.

Step 2: Determine your investment timeframe

  • How many years?

For Joe, as he is younger, he has plans to set aside this $10,000 for a period of around 20 to 25 years.

Step 3: Understand which products meet his time requirements

We have the full list of investment products here for you to understand. But instead, let us simplify it for this example.

Joe would probably choose to either

  • Top up his CPF SA (but this will go beyond the 20-year mark but at a higher interest rate) or
  • Buy into a 10 to 20-year bond which offers him an interest of around 3%.
Financial ProductRisk LevelInterest Rate Per Year (Return)Time to double capital
Savings AccountLowest1%72 Years
CPF OA Lowest2.5%28.8 Years
BondsLow3%24 Years
CPF SAHigh4%18 Years
Index ETF (eg STI)High6%12 Years
DIY Stock pickingHighest10%7.2 Years

Conclusion: This is the foundation of investing

At the end of the day, this is probably one of the easiest approaches to understand the compounding effect of money and also what products meet your timeframe.

Do your own due diligence and if you are keen to learn more, you can find out more about when you should look at investing, and what portion of your monthly income you should set aside for investments. Cheers!


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