Money burns easily. Literally or not, fire and scorching hands can make it disappear in a snap. If you decide on keeping your money, you need to know the best places to keep it. Save or invest, it is all up to you.
Save – This is how you place your money to complete safety and having it back with a chance of getting an interest.
Invest – This is where you take risks for the chance to make your money grow quicker.
Here are 5 of the best places to keep your money.
1. Bank Savings Account
There are too many places where you can keep your money. You can place it in your bag and carry it anywhere you go, keep it under your pillows or even place it inside your drawer. By doing all of the above, you are putting your money at the risk of being eaten by rats, lost or stolen. These are not very much like bank savings account.
With a bank savings account, you are placing your money in good hands. This is a very safe place to keep your hard earned money. Your bank is responsible of safekeeping the money. If the bank totally burns down, which is very isolated nowadays, your money won’t go with it.
Another thing is that, you earn interest with the money that you have deposited. Something that is very impossible to happen if it stays in your pocket.
2. Treasuries and other savings bonds
A bond is a form of loan or IOU. It is a debt security where in the holder lends money to the issuer. The issuer is obliged to pay the interest and the principal at a later date, termed as maturity. The holder is the lender (creditor), the issuer is the borrower (debtor) and the coupon is the interest.
The US Treasury is one of the safest places to lend your money. This indeed is a safe play as it is being backed by full faith and credit of United States. Aside from this, there are other bonds that can provide you a bit more cash.
3. Real Estate
Most areas of the country have backlogs of foreclosure. This makes it very difficult to decide or even get an analyst to tell you when exactly to buy a house. If you can afford the payments and have patience to wait for the right time, you will be able to get the best deal.
If you own a share of company’s stock, it means that you are a part owner of the company. A lot of financial analysts and economists still believe in the performance of good companies. There are two types of stock:
- Common stock – This kind of stock has voting rights and you can also share dividends. This represents the stocks being held by the public.
- Preferred stock – This is where you can be consistently be paid for dividends
5. Certificate of Deposit (CD)
This is a good financial service being offered by banks. Certificate of Deposit is also known as time deposit wherein your money should be kept for a specified amount of time. This one is less accessible than a bank savings account. It is a lot better if you want a bigger interest and there’s a lesser chance that you can spend it.