Best Places To Keep Your Savings

Original content by staff | added July 28, 2011

Even if those people that have some money saved could consider themselves happy, as there is not so many people in this fortunate situation, they still have a problem. Keeping the money under the mattress is not safe and not even smart. Instead of counting the bills everyday and leaving the house with the worry of being robbed, you would be better off to think about some methods to invest them.

Banking Deposits

Although the interest offered by the bank might seem ridiculous, at least you will be slightly protected from inflation and you will know your money is relatively safe. Some people are afraid of the bank being bankrupted in the future. We are not saying this can't happen, but you should know that the government guarantees those deposits, so you will generally get your money back in this case.

Where do you keep your savings?

Stocks and Bonds

While this method of investing has shown us its limits in the 2008 financial crush, we could say the markets are stable again and you can try to invest once more in those financial instruments. If you are afraid of investing in the companies, you could find governmental bonds and stocks that are guaranteed by the authorities. While the interests are not so great compared with the normal stocks, the risks are minimized and the incomes are surely better than the ones from the banking deposits.

Forex Market and Future Options

It is your responsibility if you choose those investment methods. It is commonly known that Forex and hedge funds could double your money in one night, but you could wake up without your lifetime savings during the next one. If you are a risky kind of person that likes instant earnings and you are also willing to take some serious risks, you could choose this method to invest. In this case, the importance of the broker can't be stated, as this is the person responsible to bring you those earnings. Naturally, you do not want to put all your savings in such risky places as you cannot afford to lose all your savings. Besides, if you are using it to gamble, is it really even savings?

As a conclusion, there are two methods to invest: the safe method that doesn't bring you so much money, and the risky method that could make you rich or poor during a short time. The choice is yours, and it mainly depends on your appetite for risk.

Do you have any more questions about where to keep your savings? Or do you have any of your own tips about storing savings? Please post your questions and comments in the Business and Finances section of our forums!

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