WHY KEEP MONEY IN YOUR ECONOMY ACCOUNT IS THE SECURITY INVESTMENT OPTION?

The choice of people to prefer savings accounts compared to other investment options is also due to the fact that savings accounts are one of the most liquid investments outside demand and cash. Savings accounts not only save you money for future use, but also make it easier to access your funds, but not when it comes to cashing bonds, Equities and other investments.

These days, many people are looking for different investment options to get maximum return on the money they do not intend to use in the near future. That said, a majority of people still consider money in their savings accounts as the safest investment option, thanks to the risk that includes other investment options such as equities, mutual funds , Etc. Overall, these people are fairly satisfied with the modest interest rates of 4% to 6% offered by the banks of the PSU and the private sector banks, respectively.
Looking to invest money from your savings account?
If you are looking to invest money from your savings accounts, you obviously do not know that the money from your savings accounts is already an investment. Here's how: In simple terms, an investment is to put aside a specific amount of money for future use in hopes of getting a return on that money. Whether it is stock or real estate, you can invest in anything that can give you a higher return on your money in the future. Generally, you need to consider three important factors while making an investment.

Here is a brief account of each factor.

1. Rate of return
2. Risk involved
3. liquidity

Return rate

The amount of return on your money that you can reasonably expect with your investment is the first thing you usually consider when choosing an investment option. For example, over a long term, a reasonable rate of return on an exchange investment is 7%, while the rate of return to keep your money in your savings accounts is 3% to 6% currently.

Risk involved
The risk involved in returning an investment is another key factor that influences your decision to make an investment in a particular asset. As far as the stock market is concerned, there is a high risk, especially for short-term investment. So if you want to invest your money in stocks for a short time, you are likely to lose a significant amount of money that you have invested. However, if you put that money into a savings account, you will surely get a 3% to 6% interest on the amount you maintained for a period.

Liquidity
The liquidity of your investment is also an important factor that you often consider while making an investment. In simple terms, liquidity refers to easy access to your funds if necessary. When you choose to keep your money in your savings accounts, you have the option to withdraw your funds whenever you need them through an ATM or online money transfer mechanism from NEFT & RTGS, while in stocks, you must first contact a broker who will charge a commission to sell your shares. With regard to cash deposits, you have to incur losses to start early, while in real estate, you must first find a buyer.

As you can see, keeping your money in a savings account meets all of the aforementioned requirements of a good investment. There is no risk associated with the savings account. Moreover, it guarantees you a correct return on your money with the installation to remove it according to your convenience.
There are many other investment options that will keep your money in your savings accounts. For example, money market funds, fixed bank deposits, bonds, debentures, mutual funds, etc. You might consider one of these items as the best for investment.

Here are some simple rules to compare different investment options.

If you need money in a short period of time, you should go for an investment that presents less risk. For example, if you save for your retirements, you can take care of a significant risk, but you save to buy a car in a few years, you can cover yourself a certain risk. However, if you save to buy a motorcycle or large appliance, you can not afford any risk.
If you need the money invested quickly, always choose a fairly liquid investment good. There is no need to invest your emergency funds in stocks, fixed deposits or real estate because these investments are particularly important for a long term; Therefore, they are not a good option if you need the money invested quickly. If you need a certain amount at a specific time, you are strongly advised to reduce the risk factor and