Finding the Best Savings Rates: Is it worth it?

Posted by admin in Finance on 07 20th, 2011 | no responses

You work hard for your money, now its time that your money works hard for you. How to do it? Well make an investment. Investments come two categories: risk free investment and high risk investments. If you want to earn big time then deal with high risk investment. If you want to be on the safe side then go for risk free investment. It’s as easy as that. If you’re not a gambler, making an insured investment is probably the best for you. By keeping your money in the bank, you can already call yourself an investor.

Why? Because you are allowing the bank to use your money, at the end of your contract agreement you will get a fixed percentage profit. You will get your money back in full. The disadvantage of savings account is that you are getting a very small percentage of profit as compared to high risk investments no matter how long you keep you money locked. Banks today offer competitive savings rates or 3% to 4% of the minimum amount deposited. Let’s say you have $1,000 on your savings account, at 3% you will earn $30 per annum. In ten years you can easily earn $300. This is a relatively small amount for such long time. Is it worth it? Well, only you can answer that. Imagine investing $10,000 at 4% per annum, in ten years your money will earn $4,000. Is it worth it? Well, you decide. The point here is that if you want to be on the safe side of things you have to deal with the fact that your money is not going to earn that much. But then again no matter how much your money earns, it’s the fact that your money is earning. You are not risking anything at all. Finding the best savings rates through research and comparison is the only key to earn more. Whether it’s worth it or not, is solely up to you.