Where to store money: tips and tricks

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The issue of storing savings in a country with an unstable economic and political situation is one of the most important for ordinary citizens. "Keep your money in savings banks!" So says the hero of the notorious film, and one cannot but agree with him. On the one hand, and on the other hand, our banks are also unstable.

So, where to keep money? Why choose a bank?

As a rule, when choosing a bank, people pay attention to the interest rate on deposits. However, keep in mind that too high interest should arouse suspicion - you don't want to lose your savings, do you?

In addition, a high rate on deposits indicates that the bank has certain problems, expressed in the lack of national currency. Before giving money to a deposit, study the reputation of the bank. At the same time, pay attention to how long the bank has existed, how it has experienced economic crises, who is the owner, and also to the scope of this institution, if you are used to being cautious. The guarantee of the return of the deposit is state-owned banks, but the interest rates in them, asgenerally below private.

In addition to the problem of choosing a reliable bank, there is also the question of where to store money.

There is no single answer to this question, because all our currencies are too unstable. Therefore, consider the most popular options.

- In national currency. If your deposit is targeted and kept for a short period of time. After that, you plan to spend it for any purpose in the national currency, then it will be beneficial for you to keep it in it. Moreover, there are always higher rates for deposits in the national currency.

- In dollars. The dollar has been considered one of the most stable currencies in the world for more than a century. However, the latest financial crisis affected him as well. However, if you plan to deposit money for a short term (about 3 months), it will be more profitable in dollars.

- In Euro. At the moment, the euro exchange rate is more stable, and therefore the European currency has become a worthy competitor to the dollar.

However, what if you do not trust any of the world's currencies? Where to keep money then?

You can keep money in gold. "Gold" deposits are very profitable, but only if it is long-term. So, you enter into an agreement with the bank to buy gold, which is stored there. And although the interest on such deposits is always low, they are growing right before our eyes, along with the price of gold.

Where to store money if you are not satisfied with all of the above options?

Real estate is a good alternative to financialdeposits. You buy an apartment with your savings, and then rent it out - this is your interest. The advantage of this approach is that you are in control of your savings. However, during a crisis, real estate prices can drop by 2 or more times.

Where else should you keep your money?

• In securities (for this you must be very well versed in this area, so as not to accidentally lose all your savings, or have a professional consultant)
• In art and antiques. Antiques are something like a gold reserve, but there is a risk of buying a fake for a lot of money.
• In non-cash currency.

Where is it better to keep money if all of the above categorically does not suit you?

Keep your money…in your wallet! Then they will always be at hand and exclusively under your control. However, even here there is a risk of losing them. Conclusion: no need to keep money. They must work: in the stock markets, in your own business, etc.