What is Better Than Saving Accounts?

[Jasmine]

For a lot of people saving money means saving money in interest bearing bank accounts. Depending on their country’s policy, banks’ interest they can receive 1-5 percent interest in saving accounts. Fixed deposit account is better than a normal saving account because you can receive better interest rates but you need to lock your funds for certain time period.

Security Bonds: Security bonds are issued by the central banks or any other government instructions and provide a good interest rates on security deposits. This is better than saving in commercial banks.

Government’s Treasury Bills: This are bills are issued by government and public can buy for minimum 12 months period and receive return on investment.

Mutual Funds: Return on investment on mutual funds is better than saving in banks, even the fixed deposit accounts, and less riskier than investing in the stock market.

Gold: When you save money in banks the value of money can go down due to inflation, however, gold can b a better option.

 

[Mika]

Investing is better than saving. In my home country, commercial banks offer up to 12 percent interest on fixed deposits, however, security bonds and treasury bills offer only 9-11 percent interest. Since commercial banks offer better interest rates, people are not interested in investing in security bonds and treasury bills. Security bonds and treasury bills might be better than normal saving accounts but they are certainly not better than foxed deposit bank accounts. In our country, mutual funds are said to be better than security bonds, treasury bills, and even foxed deposit bank accounts. The money you invested in mutual funds could yield up to a 22 percent interest rate over the period of 5 years. If you choose mutual funds managed by a trustworthy company (in our case most of the mutual funds are managed by banks and financial companies), mutual funds are better than saving accounts. Mutual funds are also less risky than the stock market.

 

[Sotherefore]

Saving account does not really make sense to me , because it is just like you not saving anything because at the end of the month the interest they will be giving you will not even worth all the depreciation your money will be going through if you have to consider it for long-term purposes.

If I am interested to invest my money for long-term purposes , I will rather consider investing in real estate because it is one of the most profitable Investment that can be done at least to maintain the value of your assets over a long period of time . .

It all depends on what you are interested, but for me I do not really have any interest to invest in banks or any financial institution because they will not offer me any reasonable percentage on my investment , even when the depreciation is growing everyday