This way are the most common ways that you will always hear from our older generations. They believe that this kind of investments are the safest and effortless investments that we could have. By putting our cash into the bank could helps us to generate from 3-4% interest per annum.
But many of the rich will categorize this investment the least popular ones as the money loosing investments. Why?
Assuming that you could get the highest rates for the FDs 4%. Your money will grow 4% per annum but if you observe our country’s inflation rates over this coming few year, it easily come to 10% per annum.
What do you think your value of your money after 10-20 years along the road? Will the value be the same as what we are getting now?
Definitely not, that is the reason why rich doesn’t keep mush money in their FDs but to use it at other investment hat could brings higher return to our money. Some risk takers even are lending money from the banks to invest in more higher returns investments.
Of course it is not all wrong to put money into FDs as it is a capital guranteed investment but it is definitely better if you could diversified you investments into other higher returns investments out there. As the proverb says, don’t put everything into one basket.