This article will provide you with 7 places to keep your money besides the bank. Bank savings accounts are one of the best places to keep your money. That’s because they are safe and you do not have to fear that your money will be lost.
However, some people are wary of keeping their money in the bank. Meanwhile, others want places that have higher interest rates and incentives that will potentially yield more returns than banks do.
7 Places to Keep Your Money Besides the Bank
Below are some of the best places to keep your money besides bank savings accounts
Real Estate Investment Trusts
Real estate investment trusts are companies that invest in real estate. They operate like mutual funds by pooling capital from several investors
Real estate investments are illiquid. Hence, they could be a good choice of investment for you if you do not need access to your money for years.
Bonds signify debt. Hence, when you purchase bonds issued by the government, you are giving a loan to them. This loan will attract an interest rate that will be paid to you at a fixed rate over time in addition to the principal amount you used to purchase the bonds.
Federal bonds are considered low-risk and safe because they are backed by the US government. This could be one of the best places to keep your money if you do not want a bank savings account.
This is another popular investment option asides bank savings account. Precious metals include gold, silver, and other metals like platinum and copper.
Although some investors see precious as a safe investment, others are wary about putting their money in it. However, one thing about precious metals is that they are not subject to the same volatility as stocks and other investments. They tend to retain their value and can appreciate in value over time.
To invest in precious metals, you can either buy them outright and hold their physical form or purchase ETFs that have exposure to them.
Luxury assets are tangible assets like art, cars, watches, and some jewellery. You can touch and see these assets compared to a bank account statement.
Purchasing luxury assets could serve as a great investment as the value holds well and increases with time.
Investing in stocks implies that you are a shareholder in a company. When you invest in stocks, you are entitled to dividends and voting rights in the company. This is a good alternative to putting your money in a bank savings account. That’s because it will bring more returns for you. However, you’d be exposing your money to more risk.
This is another place to put your money asides in a bank savings account. Peer-to-peer lending platforms connect people who want to borrow money to those who want to lend money. So, instead of taking money from a bank, people can borrow money from investors who are registered on the platform.
P2P lending can be very profitable to increase your returns. Also, with peer-to-peer lending, you can control how much risk you take on. You can also decide to invest aggressively or conservatively.
Although cryptocurrencies like Bitcoin, Litecoin, and Ethereum are risky investments with high volatility, they could be a good option to keep and grow your money.
In addition to this, cryptocurrencies offer individual investors an opportunity to get into emerging technology.
Are There Risks to Saving Money Outside Bank Savings Account?
This depends on the investment your money into. Some investments like peer-to-peer lending are not FDIC-insured. Hence, you could lose some or all of your money. However, other options like federal bonds are considered low risk, so it’s safe to put your money into them.
What is the Safest Place to Put Money in a Depression?
During a depression, some of the best places to keep your money are in a bank, bank safe deposit boxes, or private vaults.
What are the Smartest Places to Put Your Money?
Some of the smartest places to put your money to get high returns are
- Savings account.
- High-yield savings account.
- Money market funds.
- Money market accounts.
- Certificates of Deposit.
- Treasury bills, notes, bonds, and TIPS.
What are Some of the Best Places to Invest Cash in 2022?
Some of the best investments of 2022 with high returns include
- Short-term certificates of deposit.
- Dividend stocks.
- Value stock funds.
- Short-term government bond funds.
- High-yield savings accounts.
- S&P index funds.
- Short-term corporate bond funds.
What is the Best Place to Put Large Sums of Money?
The best place to keep large sums of money is a savings account. That’s because they are FDIC and NUAC insured. Also, your funds will b safe from daily spending.
Where Should Seniors Put Their Money?
Seniors should put their money in low-risk investments. These investments grow cash and you do not have to fear losing your money
- Certificates of deposits.
- Low-volatility stocks.
- Savings bonds.
- Preferred stocks.
- Treasury securities.
- Dividend-paying stocks.
- Fixed annuities.
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