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Forget a Cash ISA! I think these 2 FTSE 100 growth stocks could help to make you £1m

Since the returns on Cash ISAs are around 1% on average at the present time, the chances of becoming a Cash ISA millionaire are relatively slim. Even if you invest £20,000 per annum, it would take around 40 years to have a £1m Cash ISA at current rates of interest.

By contrast, the returns that are available in the FTSE 100 at the present time could make it easier for you to generate a seven-figure portfolio. A number of stocks, such as the two described below, seem to offer growth at a reasonable price. They could, therefore, improve your long-term financial prospects and increase your chances of becoming an ISA millionaire.

Tesco

The UK retail sector may be experiencing a period of change and uncertainty, but Tesco (LSE: TSCO) is forecast to post a rise in net profit of 20% in the current year. The company’s focus on increasing its efficiency is expected to lead to a rising operating margin over the next few years, while its acquisitions are due to catalyse its organic growth rate.

Alongside this, the company is rationalising its asset base. It is focusing on its core offering, with Tuesday’s sale of its mortgage portfolio to Lloyds for £3.8bn being a further example of this strategy being put into action

Despite its encouraging growth outlook, Tesco trades on a price-to-earnings growth (PEG) ratio of just 0.8. This could equate to a wide margin of safety when compared to other major retailers, with many of them struggling to post such high profit growth during a period of weak consumer sentiment.

Since Tesco is forecast to rapidly raise its dividend payments so that it yields over 3% in the current year, the changes being implemented by the retailer seem to be coming to fruition following its highly challenging period in the aftermath of the financial crisis. As such, now could be the right time to buy the stock, with its total return potential being high.

Johnson Matthey

Sustainable technologies business Johnson Matthey (LSE: JMAT) also offers an improving financial outlook. The company is forecast to post a rise in earnings per share of over 9% in the current year. Since it trades on a price-to-earnings growth (PEG) ratio of just 1.7, it seems to offer a relatively wide margin of safety.

Although the company’s recent update was somewhat mixed, with its various divisions experiencing contrasting rates of performance, the long-term outlook for the business remains sound. Its focus on technologies that provide a cleaner environment are likely to remain highly relevant in an era when a growing world population and increasing urbanisation cause air quality issues across the globe.

Since Johnson Matthey has a dividend yield of 3.1% from a payout that is covered 2.8 times by profit, its income investing potential is relatively high. As such, it could provide investment potential for income investors and growth-seekers. Having been volatile during the course of 2019, now could be an opportune time to buy a slice of the business while uncertainty regarding the world economy’s outlook is high.

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Peter Stephens owns shares of Tesco. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.