Valuing money has never been easier. Just know when you need the money and choose a strategy accordingly.
On the one hand, it is necessary to know or at least guess in advance how long you will not need the money, or when you will really need it. Based on this estimate, you choose the appropriate strategy. You can value money by investing or saving. Deposit products have the advantage that their value can never be under the deposit during the savings cycle. For investments, the initial value of the investment may vary. How much depends on what the underlying assets are.
Money available at any time
If you need to have funds available at any time, a savings account will be the best product for saving them. Choose one that is without notice and will bring you at least some appreciation. Large banks do not have a very rich choice, so focus on smaller banks or credit unions.
The current number one in the field of the highest interest rates on the market is Air Bank, which offers an annual interest rate of 2.5 percent. The bank offers internet banking. The disadvantage is the lower number of branches. The second way to save money is Equa bank, which offers an interest rate of 2.3 percent on its savings account.
For example, the offer of a savings account of the Metropolitan Savings Cooperative is completely unsatisfactory. Despite the highest possible interest rate on the market – 2.8 percent – the absence of internet banking is knocking out this campaign. To quickly move 250 thousand crowns, you must go to one of the six branches and pick up the money in cash. From a security point of view, this is not a smart move that we can boldly recommend.
Year, maximum two
If you have up to two years before you need your money, it is basically the same as in the previous case. Find a deposit product that offers the highest possible interest rate. You can use over 200 deposit products such as savings accounts and term deposits.
You don’t even have to worry too much about the notice period. These are, after all, one of the signs that the deposit bears better interest rates. Although even this statement is not absolute.
Three or more years
It is worth thinking a little more about valuing funds for more than three years. Will you need all or part of it in three years? If the second option applies, think again about how long and if you will really need the money at all. Sluggishness in placing money in financial products can unnecessarily cost you to devalue it from pervasive inflation.
If you want to increase the value of money in the long run and use the returns for ten or more years, for example, be sure to look for suitable stocks or mutual funds.