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Question regarding VPN server on same network as the VPN client devices.

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Makes no sense to do so, unless you were afraid that someone within your own network would be sniffing traffic between your router and your NAS. All the traffic going to the Internet would still be in the open.
 
Is there a benefit connecting to a VPN server (ex. Synology NAS VPN server) on same network (like at home) where all your connected devices located? Can you connect a router with a VPN client on a NAS VPN server on same home network & get the benefit of added security encryption?

No - and introducing complexity into a VPN solution is not a good thing - keep it simple as a misconfiguration might expose everything.
 
OK, I have to look for an outside VPN server for added protection then. I thought I can do all these things with VPN without having to spend extra money to keep my network more secured as I have a NAS & router with both VPN server & client features.
I think we are misunderstanding what you are trying to achieve here. Can you explain it another way. What traffic are you trying to secure and from who.

There's nothing to stop you from running a VPN server on your LAN, it's just that there's no point in doing it.
 
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I have an e-commerce site that I'm hosting on my Synology NAS web server at home that I'm trying to keep secure as much possible before I'll start selling things online.

My advice is to rent a VPS (Linode or Digital Ocean are great places to look at), and host your online shopping site there instead. It will be easier to properly secure than within your LAN, where any of your local computers getting compromised through malware could have them start attacking your own NAS (and vice-versa).

Chances are whatever web server you will run on your VPS will be more secure and up-to-date than the one running on your NAS. Most distro would publish OpenSSL or Apache security updates within 2-3 days, while a NAS manufacturer can take a few weeks, especially if it's not a high visibility issue such as Heartbleed (which still took 1-2 weeks for many NAS vendors, more for some).
 

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