Make money by saving into high interest bank accounts
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With the worldwide economy still struggling to get back on its feet, the buzz word going around the moment is security of your money. People are less likely to be ready to fork over their hard earned cash when everything is still looking a little bit uncertain. If you are sitting on a pile of money and wondering what to do with it in the short term until the outlook is more certain have you considered depositing it into a high interest bank account? One of the best places to earn the higher interest rates is with the Australian banks, such as nab or ING. Their online savings accounts could see you earn over 5% on your money which is not a bad return considering what is going on with the world.
Of course many would argue that now is the best time to buy shares in blue stock companies while they are priced lower and enjoy the capital growth as the market regains confidence and certainty. This is true. However not everyone is willing to take on the extra risk, and perhaps you just want to keep your money save until you are sure of what you want to do with it.
It is also a great idea to save your money into a high interest bank account while you are saving for large items such as a car or house deposit. It allows you to generate a steady (but small) return on your deposit while still having instant access to it when you are ready to make a purchase.
I know several people who had their house deposits and life savings tucked away in a high risk managed fund, ready to use it when they decided to buy their first house. Here in Australia, with the government grants that were available, they needed to sell down their managed funds quickly when the market had collapsed in order to access their cash if they wanted to take opportunity of the extra government handout. The best advice is plan for the future and diversify. High risk managed funds are good if you can take the bad years with the good years. If you need certainty with your returns then cash is a safer option.
All in all, plan how much money you need to save and make in order to achieve your goals and stick to them. If you consistently save money into a high interest bank account then you will be able to make money on your money with interest and this will compound and compound the longer you leave it there. If your plan is to save and leave your cash in a bank account for several years then I would recommend you seek financial advice as you will be able to get better returns (with more risk) in other avenues than cash.
