FundRobot » Trust Funds » Where do I invest my savings?

Old   #1 (permalink)
Posts: 2,526
Default do i invest my savings

I am currently working in a fine company, where I can mostly save about approx. 1000$ a month at the end.
First, i wish to have a high return, obviously as high as i can get. So here is my proposal.
It can be a bank or any trust worthy organization with minimum risk where I can send and deposit my monthly saving. And in return I can withdraw the interest I am earning every month any time and same goes for the money that i have been depositing every month.

I know mostly such options are offered by banks but I am open to any other way of investing my money. I am very new to this so I am not aware of most ways of earning profit so it will be great if you can explain as much as possible

Thank you
TopGear.12 is offline   Reply With Quote
Old   #2 (permalink)
Posts: 2,643
Default do i invest my savings

The problem with investing safe is that your returns will be extremely low. A bank savings account (the only one with the liquidity you are asking for) will pay about 1/4 of a percent annually if you are lucky - basically about $30 a year. A CD will pay more, but you are locked in for a specific period of time (starting at 3 months with a lousy return up to 5 years with a better return). These also have low risk, but will not allow you to withdraw anything until maturity.

Once you start looking at return (interest/appreciation) you start running into greater risk - even a bond fund, for example, can decline in value even as the face value of the bonds do not change (value moves opposite interest - interest rates up, bond value down) - this means that if you were to need to remove your appreciation, you could be doing so at a point in time when value is down - meaning you could be losing money. Similarly with stocks - they do not technically have interest rates (although you can invest in stocks that pay a dividend) but the value of any individual stock will vary over time, so you may find a stock that has a good dividend (payable quarterly by check sent to you), the value may decrease or the company could technically go out of business and you lose everything.
Happiness45 is offline   Reply With Quote
Old   #3 (permalink)
Posts: 2,611
Default do i invest my savings

First let's redefine your terms. - under the current interest rate environment

Savings is a way to lose your money to inflation but not by irresponsible spending, reckless gambling or ill-advised investing.

Once you have poked around the various financial institutions, you will find a "high rate of return' is non-existent. Kinda like Santa Claus and the Easter Bunny.

There are "scam" artists out there that will promise you "anything" to separate you from your money. Saver Beware!

Good luck!
JohnyZone is offline   Reply With Quote
Old   #4 (permalink)
Posts: 2,512
Default do i invest my savings

Savings or even term deposit in US$ are the safest way but the interest rate is too low.
If you wish to get higher return than those ways, you have to find risk which you can take.

For example, saving interest rate in AU$ could be around 2.5% - 4.5%, depending on the tenor or account type. If you plan to revert it into US$, forex risk exists.
PC_4Ever is offline   Reply With Quote


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