Saving Money Is saving money in the bank for long-term really profitable ?

[Sotherefore]

Savings is one of the most important arrangement in life of every prospective individual , because it is with the help of your saving that you can plan out and start up a reasonable business or engage in other things that could be profitable in your life. Most people may not have the interest to establish their dream business immediately and as a result of this they will be forced to save their money for long-term purposes and sometimes this is where problems comes in.

Over here one of the major challenges most people are facing when saving their money in the bank is the depreciation in the value of their money because of the progressive decline in the economy of the country. If the economy of any country continues to go down then people who are saving in the bank for long-term are likely to experience serious depreciation in the value of their assets.

Because of this reason a lot of people do not consider saving in the bank as the best option anymore because it will obviously ruins the value of their assets.

This has lead me to believe that saving of money in the bank may not actually be the best option, I may be wrong on this though. What if I may ask. Do you think saving money in the Bank is profitable considering the depreciation in the value of our currency ?

 

[Jasz]

Saving money in a bank is one of the most common approaches many people take to secure their future. However, saving in banks for long-term may not be as profitable as you think.

Research shows saving at a bank for more than 10 years results in earning an interest rate of about 3% which means that if you saved $100 for 10 years, it would grow to $134.10. That is, if you are lucky enough, inflation didn't affect your money .

However, this is not the case with stocks; investing $100 in the stock market can result in earning an interest rate of 6% and make your money grow to $170.08 after 10 years. As you can see, there's a huge difference between the two approachs.

In addition, stocks are also known by their high liquidity which means that you can easily access your money whenever you want without being charged any fees or taxes like withdrawing money from a bank account which has to be done according to certain rules and regulations and may take some time before you receive your money.

All things considered, I think it's worth taking into consideration investing your money instead of keeping it at a bank account because it's more profitable and gives you more freedom when accessing your money .

 

[sincerem]

Their is no need using the word 'Profitable. It isn't profitable when it comes to saving your funds in the bank. You can't see your money adding up reasonably, even if you're using a fixed deposit means, it wouldn't still grow higher, it will just grow a little bit higher. It is better to use your funds to invest in crypto like BTC, or ETH long term and lock it there untouched for the period of 2 years at least, since you're looking for a long term investment which doesn't bring you loss. If you watch the prices of the two coins, you'll come to notice that they aren't coins that depreciate with such long duration of time. They're always moving up higher year after year. In 2020, BTC and climbed show increase, also in 2021, in 2022 it isn't going all that high. But don't be surprised seeing the prices topping up high more than their respective benchmarks which they achieved earlier before now.

 

[Mika]

Banks offer three different kinds of accounts, normal saving account, fixed deposit account, and current account (also called checking account).
Normal saving accounts: You receive interest on your saving but the interest rate is very low; you can withdraw your funds whenever you want.
Fixed deposit account: You receive high interest in your saving, your funds will be locked for a certain time, and you cannot withdraw your funds before the deposit term ends.
Checking account: You don't receive interest, this account is normally for businesses.
If you want to benefit by saving in banks, you need to choose fixed deposit savings. In my home country, you can get a $12 percent interest rate for the fixed deposit term of 1 year.

 

[Kingsley]

Honestly there is really nothing profitable in saving your money in the bank if I would define profit as a gain that is made on a trade, or some benefits that accrues to you when you invest either money or time in something. So keeping your money in the bank only guarantees us one thing which is just the assurance that our money is safe and secured from all forms of loss that may arise as a result of thievery, and all other forms of disaster either natural or artificial that might arise. Beyond this advantages, the banks does not guarantee us any other special form of profit mostly at this particular point in time in this country where corruption is at its apex.

You can imagine how things are these days in this country where when you decide to save N10,000 in your account the first thing you will notice is that some percentage of that money will be deducted. And you may end up having N9950. This is telling you that you even suffer losses for saving in the time. And more so you will also suffer inflation on the money that is saved in the bank. As time value of money will take its due course.

 

[Kendy]

I think the main aim of saving money in the bank is for safety and security but if you talk about profitability then, it is a no-go area. Even if you save your money in the bank for 20 years, it will not be profitable as it would have been if it was invested in a profitable venture. This is one of the highest disadvantage of saving money in the bank because it doesn't grow but remains static or it could even be coupled with frequent deductions. The main reason I save my money in the bank is because I do not want to go into any psychological trauma which may arise if I choose to invest in a site and a later crashes.


There are still some ways in which you can save money in the bank and get profit and it will either be through opting for a fixed deposit account or a treasury bill account. In a fixed deposit account, you can actually fix your money for about 2 years or above and get some profit but it will not be high as when compared to treasury bill account. Treasury bill account is actually the one in which government borrows money from individuals and gives you some relatively high returns than that of a fixed deposit account.