This is a contributed Post
IS THE BANK REALLY THE BEST PLACE FOR YOUR SAVINGS
We all know that saving money can be a challenge, hence why we dedicate entire budgets to the purpose! Yet, when it actually comes to putting those savings somewhere safe, many of us are entirely unaware of our options.
Most commonly, of course, you’ll consider piling your saved money straight back into the bank. In the UK, especially, this is our saving go-to. With the right account, you could even enjoy small amounts of interest on your money this way.
But, that doesn’t negate the fact that your savings could serve you better if you entertained alternatives like bonds, trading, and even property. For proof of why you should, consider the following downfalls of bank-based saving pots.
Potential Poor Interest Rates
Interest rates are about the only chance you have of earning from banked savings, yet these may not be quite what you’re expecting. Even supposedly interest-focused ISAs don’t exactly provide lucrative returns. Regardless of how much you set aside, you may well find that interest here is so small as to be inconsequential. The returns you stand to see from investing money elsewhere could certainly outstrip anything even a high-yield interest account can offer. While there are added risks to take into consideration with saving alternatives, then, many individuals find that those risks are more than worth taking right now.
A Risk of Bank Crashes
If recent years have taught us anything, it’s that banking isn’t the clear-cut staple we once thought. After all, if an institution like the Bank of America can crash, what does it say for smaller firms? The 2008 crash has undoubtedly left us all a little shaken when it comes to blindly piling our money into one saving basket, and with good reason. In truth, the only real way to protect ourselves against issues like these is to diversify our savings focus. Straightforward investments are one way to do this, although they also rely on banking stability more than you might imagine. Hence why many people are now turning to cryptocurrencies and other alternatives. By taking the time to find out the current price of BTC and using at least some of your savings to this end, you ensure you don’t lose everything no matter what. And, that’s a peace of mind you’d struggle to find otherwise.
Potentially Limited Access
Banks also bring the significant downfall of limited saving access, especially where high-yield accounts are concerned. It may be that you have to make special requests to access money, or that you face caps. This can be irritating considering those savings belong to you and you alone. What’s more, investing in something like stocks with immediate access could eliminate these long-winded processes overnight.
Should you rush out and withdraw your savings from your bank account right now? Probably not. But, as this list shows, it might be worth considering a few alternatives for you to get started with. That way, you can at least enjoy saving security that’s remained out of reach until now.
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