What To Do With Saved Money

Building up your savings is a great way to work towards financial independence. Yet choosing what to do with saved money can be a difficult decision.

Do you open a high yield emergency fund to earn interest or invest your cash in the stock markets? Do you repay your student loan?

Today we’ll look at some options to ensure your savings generate decent returns. Having your money working for you is better than leaving it under your mattress, gathering dust!

Earning Savings Interest With A High Yield Account

One of the safest ways to put your savings to work is to deposit your cash in a high-interest savings product.

The best high interest account from Cashero offers rates between 2% and 5% per year, so you’re guaranteed to see your account balance growing with each passing month.

Suppose you’re wondering how to get proof of address without bills to evidence your location. The great thing is, that many digital savings accounts offer online application processes and ID verification, so it’s all very streamlined.

The Benefits Of Saving In A High-Interest Account

Why choose a savings account rather than other types of investments?

The primary advantage is that you aren’t accepting high levels of risk. 

Any investment balances exposure against potential returns, so while you might stand to make a sizable profit, you could also lose your capital.

Traditional savings products often provide minimal interest, which may only add up to a few cents a month, so a high-interest account is a far better option if you’re looking to maintain or increase your savings.

Creating A Smart Savings Strategy

In addition to depositing your savings in a high return account, there are a few other ways to utilize your cash, like paying down debt.

Repaying short-term liabilities with high-interest charges (such as credit cards or personal loans) will usually mean you make an interest ‘profit’. 

If you compare the interest you’re paying each month against that earned on a savings account, it’s usually advisable to repay the debt first and then get to work building your nest egg!

It is also vital to review your retirement plan. Even if retirement is decades away, it’s never too early to start planning.

You can deposit savings in a tax-deferred retirement account, such as maxing out your 401(k) contribution each year, which can help reduce your taxable income.

As with investments, you should seek independent financial advice before selecting an investment fund if you don’t have an employer-sponsored retirement account.

Different pension providers have varying rates of return and fund performance, so it’s crucial to have a solid idea about which mutual funds are best for you to use when it comes to your retirement savings. 

How To Start Saving

If this all sounds great, but you don’t have sufficient savings to invest (or consider other big-ticket options), there’s no reason you can’t start accumulating interest.

You can open a Cashero high yield savings account with no minimum balance, so whether you have $10 or $1,000, your cash can instantly start attracting a return.

The issue with most investment products, aside from the risk, is that you can’t get involved without a considerable initial deposit, so this is a far more accessible option.

Cashero digital accounts offer instant access to your cash, so if the rainy day you’re saving for rolls around, you’ll be able to meet any financial challenges that come your way head-on!

Content Disclaimer:
As of the date of publication, the information contained on this page is deemed to be factually accurate for all terms of conditions, features, and fees. Changes made to Cashero’s terms of conditions, features, or fees after the publication of this content may not be accounted for.

App Disclaimer:
The Cashero App is now available for download in both the Apple App Store and Google Play Store, though not all features are currently functional. Cashero has not yet officially launched.

Leave a comment

Your email address will not be published.