Save for a cash deposit with SaveLend
8,04 % average return on invested capital the last 12 months
Diversify your savings by saving in loans
Choose monthly or a one-time deposit
How much do you need for a cash deposit?
If you are buying real estate, you can take out a mortgage for a maximum of 85 % of the value of the residence. This means that you need a 15 % cash deposit, i.e. your own money, in order to buy a residence. This applies regardless of whether you want a cash deposit for an apartment, house, holiday home or another type of residence.
With the help of our savings calculator, you can see how your child's savings can grow when your money is put to work on our savings platform. Adjust the starting amount, monthly savings, and savings horizon parameters to see how your capital might change over time.
The calculator's calculation is based on the average return on capital invested on the platform over the past 12 months.
Of which is interest:
How long does it take to save for a cash deposit?
Most people dream of being able to save for a cash deposit quickly. Exactly how long it takes is difficult to answer straight off, because it depends on several aspects. The amount of time it takes to save for an apartment or other residence depends mainly on three things:
- How much the home you want to buy costs
- How much and how long you save
- What interest you get on your savings
Before we explain the points in more detail, we can share an example. If you want to save for 150 000 SEK and have a monthly saving at SaveLend of 1 000 SEK, with an initial stake of 5 000 SEK, it will take about 8 years to save 150 000 SEK.
In the example above, the cash contribution is therefore SEK 150,000. It relates to the first point in the list, which is based on the fact that you need to have at least 15% in cash deposit. This means that if you want to buy a home for a million, compared to a home for ten million, the amount of cash you need to save will be significantly higher (SEK 150,000 compared to SEK 1,500,000). Therefore, the cost of the home determines how long it takes to save for a cash deposit.
Even the second point can feel pretty obvious – the more you have the opportunity to save each month and the earlier you start saving, the faster you get up to the amount you save.
The last and third point concerns the return you get on your savings. In order for you to have better opportunities to reach your savings target, you should save where you get a positive return for your money. SaveLend's target return is 7-9% on invested capital after credit losses and fees, a target we have reached or exceeded since we launched in 2014.
SaveLend's historical return
The graph below shows SaveLend's historical return on invested capital, after fees and credit losses. Historical returns are no guarantee of future returns, but what is clear is the stability that saving in loans via SaveLend has provided. SaveLend is completely outside the volatility of the stock exchange and the fact is that we haven't had a single negative return month at platform level since 2016.
Below is our return after credit losses and fees since January 2021:
Tips for saving for a cash deposit
Here are some general tips on things you should keep in mind to get a good saving and achieve your goals!
Get interest on your savings
Compound interest is one of the most important aspects in order for you to be able to save up for a cash deposit more quickly. A regular savings account usually has no, or very low, interest rates – the interest rate is almost always below 1% and usually lower than inflation.
When you reinvest the interest you get on your savings, you get the so-called compound interest effect. This means you'll get a return on both the amount you've saved, plus the interest you've already earned. At SaveLend, your capital is always reinvested (provided you have not turned off your investments), so that your money always works to achieve your goal.
Automate your savings
By automating your monthly savings, you ensure that it actually happens.
It may sound complicated, but it's exactly the opposite. With SaveLend, you can save monthly in loans automatically – so there's no need to get involved if you don't want to. Choose the amount you want to transfer each month and the day you want to deduct it from your account.
By saving monthly in loans, there is no risk that you forget to transfer money, or use the money you would save for something else. Simply ensure that you get one step closer to the cash deposit.
Spread your risks
When saving to buy retail, it is important that you do not put all the eggs in the same basket; that is, not all the savings in one place.
A savings account is safe, but you basically get no interest. The stock exchange can provide good returns, but is also associated with higher risk and requires you to stay informed. Saving in loans often gives a stable return, without requiring any involvement.
What's best is simply to save for the cash deposit, spreading your risks and increase your chances of achieving your goal.
The most important part of all to get started!Get started in 5 minutes
There is a rule of thumb that says "the best day to start saving was yesterday, the second best is today!" - and that's true!
The sooner you start saving, the more time your money will have to work for you and generate returns.
So don't wait, but start right now!
Get start in 4 simple steps:
Create an account at SaveLend
Transfer any amount
Use our default settings or tailor your savings strategy
Your money is automatically saved in loans and generate yield