Is your money lying idle at Bank Account? Here's what you should do


The reducing bank interest rate, increasing standard of living, growing aspirations, inflation etc compelled us to find appropriate investment product for better return. If you want to grow your money then definitely saving bank account and fixed deposits are not the right option. You have to think twice before doing an FD or keeping money idle at the bank account, ultimately the return on investment (ROI) matters. After-tax, the return is negligible in  FD's. The saving bank account hardly gives any interest to the customer which is even lower than the inflation. Therefore, appropriate investment planning is very essential for parking the surplus or investable amount in investment product rather keeping idle at the bank.

Why you should not keep money at Bank:

It is true that the bank account is traditionally been one of the best and safest option for parking money. Even today at remote places bank account is the best option rather than investing in any investment product. There are people feel safe and also ready to compromise with the return. The ROI of saving bank account and Fixed Deposit account do not grow at the rate which can beat inflation. So in the long run if one does not park money wisely then growing inflation will definitely supersede the bank account interest rate.

Is your money lying idle at Bank Account,is your money safe in the bank
Is your money lying idle at Bank Account


Here's what you should do:


Nowadays there are various options to grow surplus investable money. There are also secured investment products which give high and compounding returns. It is rightly said, “the best way to grow more money is to invest in a right investment product, grow your money and then repeat the process.” The various low-risk investment options are as follows:

Bonds-Bonds are very secure and safe kind of investment for the long terms ie more than 5years. There are government and corporate bonds both are secured in nature and earns 3 to 4% more than bank account interest.

Mutual Fund -SIP- One can invest in equity mutual fund, debt mutual funds or hybrid mutual fund. Mutual fund through Systematic Investment Plan (SIP) route is discipline way of investment, it helps investors to get a better return which can be 2 to 3X of bank account or FD return.

Gold-ETF-This is an open-ended Exchange Traded Fund (ETF) where an investor can buy and sell online. The price of the Gold ETF moves based on the Gold but here the investors are not purchasing the actual Gold. It is also secured investment and return is more than double of bank account interest.

Equity Investment- This another investment option, where one can expect 100% appreciation of their money but it involves risk. One should have proper knowledge before investing in this product.



You can also read our article  "Are you a long-term investor by Chance or by Choice" click here

Conclusion:


So above are a few safe and secured low-risk investment products with a better return than a bank account. So next time before keeping surplus investable money into your bank account you just think about above investment products which will definitely give you a better return. Therefore it is advisable not to let your money idle in bank account think about above investment products.

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Happy Investing!
Finogyan team