There’s no doubt about it that investing in stocks and shares takes quite a bit of mental effort, especially if you don’t know much about it to start with. Then when you’ve learned enough to start investing, there is the stress involved in watching the stock market plummet in time of economic downturns. While we know investing is a good thing, we still don’t want to lose our money or be stressed out. Having lots of money is no good if you die of a heart attack due to the stress of investing.
So what’s to be done? If you want to invest safely without the stress, or if you are feeling simply too lazy to go to all the trouble of learning about shares, there is another way. Keep your money in a term deposit or cash management account. How easy is that? Sure, you may not make the same interest that other kinds of investment bring, but it’s still quite reasonable. And all with no stress.
The upsurge of credit unions with their high interest rate offers has forced banks to finally pull up their socks and offer better terms of interest than has traditionally been the case. The Internet has helped out too, by providing opportunities for account holders to do a lot of their banking online. This means that banks don’t need to provide the same level of staffing that was once required, so they can save money on wages.
In fact, the electronic accounts of some banks offer really good interest rates like 7% or 8%. Some banks are entirely electronic by nature with no bricks and mortar for the customer to walk into. These are the ones with the best rates of interest.
A cash management account is a way of having access to your money for daily banking requirements and also taking advantage of better interest rates. They often offer tiered rates of interest so that the higher the balance the better the interest.
Term deposits may lock your funds away for the length of the term but this can be a good thing for those who are prone to spend on impulse. It means that several days are necessary before their money is available. And the interest rate is guaranteed to remain the same for the length of the term. Both these options are excellent choices for the lazy man who wants avail himself of those investment dollars.