With so many financial products and solutions to choose from, no one is spoiled for ways to grow their savings. However, some products and solutions have more to offer than others, so before you commit your savings to yet another term deposit (which aren’t paying much presently), give some thought to the following ways to grow your money quickly.
While some of the following solutions may not be suitable for your savings and your short or long-term plans, there are many others that are sure to be exactly what you’ve been looking for.
Online Savings Accounts
There are some excellent short-term online savings accounts offered by most banks these days. While they’re not a great option for long-term savings, if you’re saving up over a short period, say three to six months, they’re a great way to grow your savings through an interest rate that is usually about the same as what you’d get with a term deposit. The advantage with these accounts is that unlike a term deposit, you can add to your savings every time you get paid.
Short-Term Bond Funds
These are a top option if you’re investing more than $5,000 in the short-term, which is because you’ll need to pay brokerage fees if you go through a broker or transaction fees if you use an online account. While bond funds are riskier than term deposits, if you choose the right bond at the right time, you should get better dividends.
However, it’s very important that you understand what you’re doing here, so if you haven’t bought bonds or shares before, do your research so that you know what’s involved. It’s vital that you learn more about wealth management tips in Malaysia if you haven’t had much trading experience. Furthermore, if you know what to do, what to buy and you’re investing over $5,000 or thereabouts, it will prove more affordable to use an online trading platform, perhaps one that your bank offers.
Pay Off Your Credit Cards
While you may be looking for a great way to grow your money short-term, there’s little point in doing so if you owe money on credit cards or you’re still repaying a personal loan. When you compare the interest rates applied to these products with what you’ll get if you put your money into bonds or a short-term term deposit, it becomes immediately obvious that the bank is getting the better of you. Consider the following points:
- Interest applied to personal loan or credit cards – 15 – 20%
- Bond dividends or interest applied to term deposit – 3 – 7%
As you can see, you’re going to be anywhere from 17 – 12% in the red if you don’t pay your existing debt off before investing your savings. That’s something important to think about.
Watching your money grow quickly is possible, but you must understand what you’re doing, explore the wide range of financial products and solutions available to you and, perhaps most importantly, pay off any existing high-interest debt before investing your savings.