Where and how is it profitable to invest money at a high interest rate?

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

Living without a financial reserve for a rainy day is a very reckless decision. Even despite the difficult situation in the country, you can revise your family's budget so that you start saving money, thus forming a financial safety cushion. Soon, the question of where to invest money at a high interest rate will inevitably arise, because experts do not get tired of repeating that finances should work, and not lie dead weight somewhere in the closet.

Deposit as a savings tool

Bank deposit is the most familiar and simple method of saving money. Unfortunately, only conservation, not multiplication. However, if your savings are still small, then you can use the deposit programs of banks as a tool for accumulating an amount sufficient to invest in other projects. At the same time, there is often a desire to invest money at a high percentage, because you want to get the maximum benefit. However, there is a simple rule in the banking market: the highest interest rates are offered by young and little-known banks, andold and proven organizations that survived the previous crisis keep a more moderate interest rate. Is it worth the risk of trusting your little money to a one-day bank?

Of all the banks operating in our country, Sberbank of Russia enjoys global support and trust of depositors. It is this bank that opens the largest number of deposit accounts, accepting deposits from the population. The maximum interest rate on ruble deposits is 9.07% per annum on a deposit without the possibility of replenishment and partial withdrawal. Is it possible to invest money at a high interest rate in Sberbank? Of course you can. In this case, the projected inflation for the entire term of the deposit should be taken into account. It will not work to get rich on deposit accounts, but you can save and accumulate money for subsequent investments. In addition, the habit of setting aside part of one's profits disciplines and sets one up for capital accumulation.

Where to invest money at a high interest rate: choose the type of investment

A deposit account in a reliable bank is considered one of the most risk-free, while the income is minimal. For many, peace of mind is more valuable than the likely profit, although this is not a progressive point of view. This is largely due to lack of self-confidence or lack of relevant knowledge and skills. Where else can you invest money at a high interest rate to significantly increase your capital?

In most cases, experts offer the following investment areas:

• real estate andprecious metals;
• securities (stocks and bonds);
• all kinds of mutual funds, PAMM accounts, playing on the Forex currency exchange;
• own business;
• other types of investments.

Each of these directions is good in its own way, carries its own risks and offers different degrees of profit. Consider all types of investment in more detail.

Investment in real estate and precious metals

There are short-term and long-term investments. Real estate and precious metals are just long-term investments and can bring really good profits. You can invest money at a high interest rate by buying a certain amount of bank gold. The bar must be stored under special conditions, since its unsatisfactory condition (scratches, dents) can reduce the sale value. It will be possible to say that the invested capital has increased significantly in ten or twenty years, or even more.

About the same way it is with real estate, but there are some nuances. The real estate market fluctuates, falling prices below the purchase price is a clear loss. It is also possible that the acquired property is located on a site that will be rebuilt. No one wants their investment to be demolished, this is an additional hassle and possible losses.

Investing in stocks and bonds

Securities are highly liquid,especially if you were lucky enough to invest in a bank at a high interest rate in reliable shares of a promising company or in profitable bonds. To calculate the reliability and profitability of such an investment, you either need to understand the securities market quite well yourself, or find a good investment consultant.

Shares don't pay fixed interest, of course, but as a shareholder in a profitable enterprise, you have the right to count on your share of the profits. Dividends can be compared to high interest, in the end it is also a profit received as a result of investing. In addition, the shares of a promising company are growing quite quickly and steadily in price.

"Forex", PAMM and PIF

Trading on the Forex currency exchange can be more than profitable, and this turns the head of many novice traders. Advertising on the Internet assures that practically nothing is required - you need a computer, a certain amount of money for starting participation in the auction, and you will become a millionaire. It is possible to profitably invest money at interest received as a profit after the sale of a currency that has risen in price. In practice, most novice traders go bankrupt without having time to really understand the rules of the game. The probability of big profits here is adjacent to high risks.

PAMM accounts also belong to the Forex market, only in this case you entrust your money to a more experienced trader, counting on a part of the profit. PAMM account is much calmer, all solutions takes the manager, but the risks from this are notdecrease. This is where the human factor comes into play, the manager may make a mistake with the deal, and your contribution will be lost.

UIF is a mutual fund. You can invest money as a share through a bank, and you will also need a manager or manager who will manage all investment affairs. The risks here are somewhat less than in the Forex market, but the success of investments in this case is also very unpredictable.

Own business

You can look for ways to invest money at a high interest rate per month and hope that the bank's license will not be revoked, and inflation will be kept within some decent limits. However, there is a more dynamic option - to open your own profitable business. Depending on the chosen direction of work, profitability can reach 300%, no bank will give such an increase in welfare.

Of course, you will need to first study the issue, invest money and wait for the first time until the business becomes self-sufficient. If the return on investment and self-sufficiency can be achieved within a year, this is a great start, however, a longer period, from three to five years, is not considered a disaster, subject to stable development and a positive forecast.