For some time now, a saving account is hardly viable, but still it remains quite popular. With no other savings or investment product it is so simple to recover your money. This is why, for many, the savings account keeps its function as a reserve in case of emergencies. Another benefit is that saving accounts are safe. It is, after all, not impacted by fluctuations in the financial market. The interest on most of these saving accounts, however, has plummeted to the legal minimum of 0.11%. One who is persistent may find saving accounts that offer more interest, but a remuneration of 1.5% is surely the maximum – accompanied with an abundance of restrictions. More and more savers are thus on the look-out for alternatives that offer more profit.
Stock markets are prone to strong fluctuations, but in the long run (a minimum of 5 years and preferably longer) shares can prove to be rather profitable. Shares are therefore more suitable for people who can afford to put a certain amount of money to the side for quite some time. People who opt for individual share have to take into account that a continuous follow-up is necessary. Also, the share portfolio should be sufficiently diverse, so the yield is not dependent on a small selection. This takes time and effort, in contrast to buying loose diamonds, for example, which we will discuss subsequently.
Like saving accounts, it is difficult with bonds, too, to get a good return on your investment. Government bonds, though without risk and of good quality, have a low coupon interest. They are often a preferred alternative for savers that are searching for a safe investment. Corporate bonds have a higher yield, but only relatively.
If you don’t want to invest in individual shares and are willing (or able) to put some time and effort in the drawing up and managing of a portfolio, an investment fund might be something for you. When you invest in one fund, you indirectly invest in tens or hundreds of different shares or bonds. This somewhat curbs the risks you face when investing. However, if the market fluctuates too negatively, the fund is influenced as well. Mixed funds, with both shares and bonds, are slightly safer.
Diamonds are somewhat an oddity in this list. Buying loose diamonds is not (yet) a mainstream alternative to the saving account. This is, however, a very safe way to allocate your money to in the long run. Diamonds offer an almost guaranteed surplus, seeing that there is an exponentially increasing demand for them from the BRIC countries and the supply remains stable because there are no prospects for new diamond mines. If you want to buy loose diamonds, BAUNAT DIAMONDS is regarded as a benchmark for investing in diamonds.