Stock or Deposit interest

Synops. Where to invest your savings is always a difficult question. This app calculates if investing in a savings account with a deposit interest for a fixed number of years generates more or less revenue than investing in the index of one of the four European stock markets which are:

• DAX (Germany stock market based in Frankfurt)
• FTSE (English stock market based in London)
• CAC (French stock market based in Paris)
• SMI (Italian stock markate in Milan)

For the comparison we look at the period 1991-1998 as we use the dataset for the stock market indexes from R datasets EuStockMarkets. Interest data is from: http://www.tradingeconomics.com/germany/deposit-interest-rate-percent-wb-data.html

How it works. This app calculates the total amount of money if invested in savings with deposit interest or in the German, English, French or Italian stock market index (1991 - 1998).

Your input. You have four input fields which are: the amount you want to invest (USD), the number of years, deposit interest, one of the European stock markets indexes.

Generated output. There are six output fields which are: the stock market of your choice, the amount invested (in USD), the number of years, the interest (%), Calculation output: Total amount money invested including interest and total amount of money if invested in one of the stock market indexes.

Give it a try. A quick snapshot at the plot of the European stock markets indexes shows a huge increase in the value of the indexes form 1995 on for all four European stock markets. To make maximum profit from savings a fixed deposit interest is the best option. You are free to choose a deposit interest rate but the actual deposit interest rates for a longer period (1991-1998) are shown in the overview of deposit interest (slide 4).

Give it try and see what the interest rate must be to beat the European stock market indexes. What will be your choice, Interest or Stock market indexes?