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What to do with savings?

Discussion in 'Business & Tax Advice' started by Scorpion Ghost, Feb 15, 2017.

  1. Scorpion Ghost

    Scorpion Ghost Senior Member

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    I've saved up some money (conservative, say $5000). I want to put that money somewhere where it's safe, but also works for me to bring in some money.

    I can put it in the bank in a regular account for safekeeping, but no return.

    I can put it in the bank an "lock" it for 1 year, at 0.3% interest. This is pathetic, as I would get $15 dollars on $5000 after 1 year (and I also won't be allowed to touch the money for 1 year, otherwise I'd lose the interest).

    A friend told me about some investment fund or something, which I'll have to look into.

    What do you guys do with your savings? Any advice on what I can do with it?


    p.s maybe this amount is funny to you, or you'd advise me to spend it on starting a business or forex or hookers or whatever, but I need the safety and security of knowing that I have this money. So please, don't advise me on investing it in anything even slightly risky, I just want it to be safe, and if possible generate some return (but larger than 0.3% if possible)

    Thank you
     
  2. MisterF

    MisterF Jr. VIP Jr. VIP

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    Seek an independent financial advisor, there's various tax free savings if you're in the UK.

    Interest rates are crap everywhere, so why not split half into a bank account and half into an investment type trust, as stock markets are doing well still.
     
  3. Conor

    Conor Jr. VIP Jr. VIP

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    "Safe" won't get you a lot of interest most of the time.

    By the way, are you sure that's the annual interest rate, not monthly?
     
  4. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Yes. 3rd world country.

    The lady at the bank told me some new law was put in place last year and that's why interest rates are so low.

    My mom lives in another country (1st world, EU), and interest rates there are like 4% per year. HUGE difference.
     
  5. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    Study up on Mutual Funds as that is usually the best way to get going investing your money and I'm sure there are a bunch that would take 5K as an initial investment.

    The returns vary depending in the kind of fund as does the amount of risk so you'll need to do a bunch of reading to see what will fit your risk level comfort.
     
  6. Conor

    Conor Jr. VIP Jr. VIP

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    Even here, the annual interest rate from banks is between 3 or 4% on average, that's why I asked. Maybe try opening an overseas savings account with better rates?
     
  7. Jason Bradbury

    Jason Bradbury Power Member

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    You could always rank your site on fiverr. Thats like 1000 fiverr gigs
     
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  8. Scorpion Ghost

    Scorpion Ghost Senior Member

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    That's not 5000 gigs. You pay $6 per gig. So that's more like 835 gigs. Well, unless you buy gigs for over $20 each, then I think the fee is a bit smaller (a percentage instead of the set $1 for every $5 spent).

    That said, I could turn that into a better deal if I really cared. Create account, invite another with it, buy 3 or 4 gigs with the new account (or whatever the rule is), and get $5 gift on the initial account. Buy a gig with it! And then keep doing that until I spend all my savings. Then rub one out, and go to sleep :D
     
  9. Jason Bradbury

    Jason Bradbury Power Member

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    Isn't it $5 per gig? It isn't called sixerr LOL
     
  10. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Yeah, used to be $5, then they implemented a $0.50 fee on every $5 you spend, then it became $1 fee on every $5 you spend. And I think that if you spend over $20+ on a single transaction, then the fee is a % fee instead of the $1 flat fee.

    But if you have money in your Fiverr account and use that to buy, then you can buy exactly with no fee.

    But you're not allowed to deposit money in your Fiverr account.

    Should be called Sixerr really. Other people have made those comments since earlier - "should be called fivefiftierr" :D
     
  11. TheNumbersGuy

    TheNumbersGuy Jr. VIP Jr. VIP

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    You could look into moving your money into another country with a higher yield on their interest rates, you would have currency exchange risk & political risk (dependent on where you move the money) with this however.
     
  12. Mcom

    Mcom Newbie

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    Interest rate is horrible with that kind of cash see to start or buy an existing business and how you can use leverage such as pulling a loan.
    Have that money work for you and reinvest the profits.