LHV blog
Investor/Financial wisdom

Growth Account is the best choice for a comfortable investor – Why?

24. august 2023LHV

Launched more than 20 years ago, the LHV Growth Account is one of the first choices for those who want to move from saving to investing. Here are the five main reasons that make the Growth Account special and so popular.

Easy to get started

Fear of a lack of knowledge or skills and the perception that investing requires a lot of money are the main reasons for delaying investment activities. The Growth Account takes these excuses away, as with such an account anyone can start investing immediately. To do this, you simply need to be an LHV client, sign an Investment Service and Growth Account agreement and choose the areas or companies you believe in. You can choose how often and how much to invest automatically. Whether it is 1, 10 or 100 euros per week – your choice.

Convenient – open and forget

The Growth Account is developed primarily for long-term investing on a ‘buy and hold’ basis, not for trading shares. All investing is done automatically through the Growth Account, which means you pick the companies or sectors you want to invest in and every Wednesday an automatic investment is made from the money in your account. No inserting of orders and no timing required. Merely choose where, how often, and how much you want to invest, and it is all automatic. The greatest attraction of long-term investing is the consistency – so after 5, 10 or 30 years, it is good to discover how much your portfolio has grown in small amounts.

Buy your favourite shares in bits and pieces

A single share of large and successful companies, such as Meta, Tesla, Apple, Microsoft or Amazon, usually costs hundreds of dollars. If you have a small amount to invest but would still like to be part of the growth of these companies, the Growth Account is the right choice. If you want to buy a piece of Tesla, you do not have to spend more than a few hundred dollars at a time; instead, you can buy a piece of Tesla or any other company for a few euros every week through your Growth Account. The same applies to broad-based index funds.

Invest with every card payment

In addition, the LHV Growth Account offers a unique microinvesting option, which allows you to grow your investment portfolio unnoticed and conveniently through each payment made with your debit card. In the case of microinvesting, the amount of the debit card payment is rounded to the nearest whole number and the difference is transferred to the Growth Account. For example, if you pay EUR 7.10 for a card purchase in a store, it will be rounded to the next whole number, i.e. EUR 8, and the difference between these two numbers, i.e. 90 cents, will be invested in the funds of your choice through the Growth Account. On average, microinvesting transfers EUR 1.10 daily to the Growth Account, i.e. almost EUR 400 per year. If you invest this amount with the Growth Account continuously for 25 years, its value can increase to almost EUR 40,000 with an average return of 10%.

Save for a home down payment

There are different reasons to accumulate and grow money in the Growth Account. Some want to have more freedom in the future, others want to give their child the freedom and time to think about what to do after school. One of the most common recent goals is to use the Growth Account to accumulate money for a home down payment. LHV has made this very convenient for its clients by allowing them to transfer the money accumulated in the Growth Account directly to a home down payment at the appropriate moment without any fees.