Are you looking for alternatives to savings accounts because you think that the interest isn’t enough? The traditional savings account has become a great help to people who would like to keep their money safely in banks and have an easy access for withdrawals or deposits. But today, there are better ways to do so as you money increases, too. For your hard-earned money, here are 3 alternatives to savings accounts:
If you would like to be a “part-owner” of a famous fast-food chain, shopping mall, or a large corporation, enter the stock market. This is one of the alternatives to savings accounts which would allow you to buy a share in companies from the Philippine Stock Exchange. This alternative would require you to monitor your stocks, as well as study how it works and what steps would you take. You should have an investment strategy because there are stocks which could be either volatile or just steady. Trading in stocks is a profitable option because it provides high returns, but not all of the time, that’s why there’s always a need to monitor it. The minimum amount of a stock investment is P5,000.
2. Certificates of Deposit (CDs)
Also known as time deposit, this is one of the profitable alternatives to savings accounts which isn’t as accessible as stocks. There would be an agreed amount of time of this fixed deposit in your preferred bank with a high-interest rate. Time deposits or CDs usually last from 1 month to up to six years. This alternative is applicable to people who have little risk appetite and at the same time, would like to have predictable returns.
3. Peer-to-Peer Lending
If you’re looking for good returns and a convenient process, one of the alternatives to savings accounts is peer-to-peer lending. You get to choose how much you would like to invest, and then a platform such as ours at FundKo would serve as the bridge between you as lender and the borrower. Your money would be lent in small portions and not as a whole for a single borrower. The platform encourages diversified funds to be distributed to different loan so as to reduce the risk. Through us at FundKo, borrowers are assessed by credit checks and rated according to risk. So, you’d get a higher interest rate if the risk is equally high, too. You would receive payments as the borrowers submit their monthly repayments. Add to that, FundKo has made an 11.5% historical yield which guarantees good returns for an investor like you.
Though there are still a lot of alternatives to savings accounts, here are 3 which you could choose from that have high returns. No matter which you choose, it would be best to understand it well so you wouldn’t lose much money. You do not have a hold of every option’s interest rate that why you shouldn’t commit everything to a single option only.
For more information on investing your money through FundKo, visit https://fundko.com.