Due to inflation and depreciation banks are dropping their interest rates. If a customer did not call the tax credit phone number and be informed, then the rates can be dropped without the knowledge of the customer. Saving money in banks will not have a big impact on the capital deposited, because of the low interest rates provided by the banks. In the end the consumer will get low profits from banks. Inflation and depreciation does not seem to ease up and analysts predict that this pattern may follow for the next couple of years. Saving money in banks will become meaningless because of the low interest rates. Hence consumers should tap on other forms of deposit schemes where the interest rates are higher than those provided by banks. The best ways to get high returns on investment is depicted as below
1) Current accounts provide higher interest rates. Santander provides an interest rate of five percentages over the capital deposited in one of its accounts. Its partner A&L’s current account also provides the same interest rate.
2) Another way to get high returns on savings is through online credit facility. If a person has a small amount of money then the person can invest it on online banks. These online banks will loan the person’s capital at higher rates and provides the investor an average of seven percentages.
3) Fixed deposit provides promising returns with safety on investment. If a person has huge amount of money then the money can be invested for a period of one year to more than 6 years. As the term increases the interest on investment also increases.
4) Mortgage offsets do not provide the high interest rates, but they can save a lot of money. If a person has considerable amount of money and a grand mortgage, then the money can be invested in a bank account so that the amount is deducted from the mortgage. (Mortgage – investment). The person may pay for the remaining mortgage amount alone. Thus saving money.
5) If a person has a relatively large amount of money, then the same can be deposited in Invested. High security over the amount deposited, is Investor’s contribution. However the interest rates are low to about 3.5%
Isa accounts propose a tax free transaction for the money deposited. But the sum of money should be deposited for at least three years. If not then the consumer may face penalty charges.
6) Corporate bonds provide huge returns of up to 11%. These bonds are for the development of an organization. If the organization meets huge losses then the consumer will have to face the same.
7) Inflation related bonds have the potential to reap profits for the customer. To explain in simple terms, if the rate of inflation increases then the rate of interest for the deposit will also increase. Still the capital invested is safe from unstable market rates.
8) Investing in the government by Gilts for long term is the answer. To explain in simple forms, if inflation decreases, the interest rate will conversely increase. As the country grows, the interest rate also grows. Still the period of investment is very long.
9) Stock dividend will be promising. If a company is making profits then it will provide dividends to its share holders.
10) Buying the stocks of a profiting organization just before they announce dividends, can earn persons large interest rates.
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