Career & Money,  Living

Using Your Money To Make More Money (With A Bank)

Would you believe us if we said that there’s an easy way for you to use your money to make more money? And no, we’re not scamming you!

The answer to this curious money making technique is simply through investing in your bank.

Contrary to what many think, banks are more than just a place for you to place your money at or to apply loans from. Truth is, banks are actually a good place for you to boost your personal financial savings, while going about your daily jobs. This is done by allocating a small amount of money into bank investments, in hopes that they will grow in value. When done right, one is able to wind up with more money than he or she started with.

Below are some banking investment options that might possibly help you stretch your dollar.

Savings Plan

One of the most basic forms of investment, savings plan are guaranteed by banks and carries very little risk. Basically, the banks will require you to place a certain amount of money in an account every month for a period of time. The said period of time is usually 10 to 30 years. At the end of the tenure, you will get back a lump sum of money, which is much more than the total sum of money that you have deposited. Also note that the longer the tenure that you choose, the higher will be the amount of returns you get at the end.

Fixed Deposits

As with a savings plan, fixed deposits are deemed as one of the safest and most secure type of investment saving options. However, returns are low.

Fixed deposit gives you returns based on the amount of money you bank in and its interest rates. With that in mind, interest rates depend on the bank and also the duration of time that you wish to place in your deposits. The longer you place your deposits, the higher will be the interest rates that are offered to you. Also, take into account that withdrawing your fixed deposit before its due maturity date will result in you losing all the interest income that you’re supposed to get.

Stock Market Investment

Some people regard stock market investments better than placing your money in fixed deposits or an insurance investment plan. This is because you are able to take back your money any time you wish to do so by selling the stock.

However, in all honesty, this can be quite a risky form of investment and one would require a certain amount of money to start investing in the stock market. To be on the safe side, it is advisable to only invest in blue chip stocks in the stock exchange because they are regarded as stocks that have a record of paying a stable stream of dividends. In simple terms – blue chip stocks are stocks of companies that are financially safe and always pay out dividends. The dividends will be the income that you receive from investing in the stocks.

Unit Trusts

Usually sold by investment banks, a unit trust is generally low-risk and low-return open-ended investment. Alongside the fact that trained individuals are more often than not hired to monitor and select the best investments out there, this type of investment offers you access to a wide range of securities. Thus, making it a more secure type of investment.

However, do note that there is a risk of you losing money in this form of investment. This is why it is important to properly go through the bank’s past investment. Fret not though, the investment banks would usually show you records of their past investments and notify you to a certain degree of accuracy the dividend yield that you will get yearly.

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