It is no longer worthwhile to leave free money in a current or savings account because of low interest rates, which will not cover the inflation rate. Fortunately, there are still plenty of opportunities for small and large investors to invest money. Here is an overview of the most common ways to profitably benefit from cash.
Investing in real estate
You can invest in your property both your own finances and mortgage loan funds. A very safe investment is the purchase of an apartment in private ownership or a property with several housing units. Rent the flats and pay the mortgage or rent money on a term deposit. Choose a property with a convenient location, a quick sale option and low reconstruction and operation costs.
Start building savings
Although building savings has undergone some transformation, it is still a relatively profitable instrument with state support of 10% of the saved amount, up to USD 2,000 a year. The interest rate ranges from 0.5 to 1.5% and it cannot be expected to increase in the future. Savings are for a period of 6 years and in the case of early withdrawal you will not receive state contributions and pay the termination fee.
Save money on term deposits
Term deposits are an alternative to savings accounts, but offer interest rates up to about 3%. They are advantageous if you do not need money for a few years. If you make a withdrawal before the notice date, you will not receive interest income and pay the contractual penalty. Time deposits are more suitable for larger investments over USD 100,000.
Life insurance with savings component
Insurance life protection as well as the savings component brings investment life insurance. Part of the money is transferred to mutual funds for evaluation and part to pay insurance. Unlike capital life insurance, you have a much better appreciation of your money. In general, the insurance period is 10 years.
Highly liquid mutual funds
Today, you have the opportunity to invest in several types of mutual funds with different degrees of risk. You can choose to invest in more conservative bonds or riskier stocks that may yield an interesting return, but you can also easily lose. The funds are highly liquid and can be sold or redeemed at any time. You pay an annual fee for fund management and management, regardless of profit or loss.
Other investment options
Another way to appreciate money is to invest in gold, for which you get certificates of purchase, shares of mining companies or physical gold. You can also invest in stocks through a brokerage company, which gives you an interesting return. Due to currency fluctuations, it is recommended to invest in stocks for five years or more. Investments in currency or commodities such as silver, coal, oil or sugar are also popular. It pays to deposit money into the entire commodity area rather than just one commodity.