There are many different reasons that people choose to save their money, whether it’s for a special vacation, as an emergency fund or for other big life events that could be on the horizon. However, traditional savings accounts do not particularly offer people the same benefits they once did, as poor interest rates mean that the money that is sat in the account is not bringing you the same level of return as it could if it matured elsewhere.
This article will look at different ways you could choose to store your savings that differ from traditional methods and the benefits each of these options can bring to investors.
Bonds
Bonds offer people a low-risk investment opportunity. They are issued by companies and governments to help fund projects and are often issued for a specific length of time with a fixed interest rate. As such, you could be hit with penalties if you decide to withdraw some or all of your money from the bonds ahead of time.
Stocks and shares
An increasingly popular way for people to make the most from their savings is to think about investing the money into stocks and shares. Although this may not be for everyone, investing does bring with it the opportunity to make a substantial return on your savings. It’s now easier than ever to get into the world of trading, with reputable online trading platforms such as Tradu where people can buy, sell and trade stocks and shares in a safe and secure environment.
Certificate of Deposit
Similar to a normal savings account, Certificate of Deposits (CDs) are readily available through lots of banks and generally offer a higher interest rate in comparison to a standard savings account. A key difference between the two is that with a Certificate of Deposit, you will have to commit to leaving your money in that account for a predetermined amount of time, otherwise, you could be expected to pay a penalty.
Invest in property
One of the best ways to make a return on your savings is to consider investing in things like property. Of course, this means that you won’t have access to your money should you need it, but it does provide you with the opportunity to make a large profit in the years to come as the demand for housing is always so high.
Another benefit of investing in property is that you could potentially rent the property out which would allow you to see the benefits financially in the short term while also retaining your investment in the property itself for long-term financial security.
