Interest rates seem to be lower than ever. The days of interest rates at 10% or higher are long gone. I've been looking for safe places to invest and the best rates I've found were 3.9%. I'm now considering investing in premium bonds. Where do you save? Do you use premium bonds?
Well, all I have for now is a savings account. I'm still in the process of learning about other investment options such as MUTUAL FUNDS, and TREASURY BONDS but right now, I'm thinking of investing on mutual funds. Mutual funds are generally low risk investment options which also offers little monetary gains from your investment but its still better than nothing considering that the financial sector of the world is in chaos.
I've heard that bonds are on their way out. Money markets and diversified stock portfolios still seem to be the way to go.
I still save my money in banks and it looks safe for me not minding the fact that the interest rates on savings accounts are almost zero in Nigeria. I do not want cases where I would save my money and have issues in the future of not being able to withdraw my funds which are part of the reason I don't invest in any passive income scheme. However, your decision to invest in bonds look fine for me but ensure that you're buying from the government to avoid issues arising in the future where there would be no fund to liquidate your bonds.
It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals. I do record my expenses, it helps me to track all of my expenses, I also, make a budget, it helps to organize my record expenses into a workable budget. Deciding what my priorites is also helps, it is important to plan for retirement, prioritizing goals can give an idea where to start saving. Premium bonds, be sure that you're buying from the government to prevent issues in the future.
I used to save on M-Pesa. I have now started saving in bank since they removed monthly and yearly charges. I can also accumulate funds in PayPal but not with the intentions of saving. I only do that so I can withdraw more to my local bank.
Basically, I have my money saved up in the banks and it pretty secure for me as I have access to it anywhere, anytime and whenever I please. Even with the use of mobile internet banking, it makes it very easy to get access to my fund without having to hit the bank or the Automated Teller Machine (ATM). I have heard of investing in bonds before but no one have really explained to me how it works, the advantages and disadvantages of investing it because I believe that nothing in this life comes with only advantages and no disadvantage. So if you help and give me a good insight on how premium bonds work, if it's lucrative enough to me, then I might consider investing my money in it. Looking forward to getting a PM from you sooner or later.
