Topic: Where will people save money- A report by Prothomalo - page 2. (Read 197 times)

Negative interest proves that your nation is doing great, it is not a bad thing. In turkey the interest rates in a bank is as high as 18% for example, that means if you put money in there, you would be making a lot of profit from interest, however that also means that you are losing soooo much of your moneys value as well, the inflation is nearly 40% but they are hiding it so that means you are losing money even with 18% interest rate.

Look at all the bad nations with bad inflation and you will find good interest rates, they are just there to make sure you do not turn your money into foreign currency, which people do anyway. All in all I would say that negative interest is awesome, because that means at least your nations economy is doing fine, and if you put your money into a business instead of interest, then you could make a bigger profit, or at least some profit instead of negative.

I think it is not safe to invest in the stock market in Bangladesh.  Because in the last few years, thousands of investors in the stock market have had to take to the streets to assert their rights. In addition to banks and the stock market, people can invest money in gold and real estate if they want.

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Dhak Stock Exchange.  Please correct the spelling.

That's actually great if you compare it with ABN Amro bank, which has a negative interest. You need to pay the bank 0.5% for having your money deposited there:


source: https://www.abnamro.nl/en/personal/interest/current-interest-rates.html

Current inflation rate is recorded as ~5.5% (I need to check but it's around this figure). So, the return isn’t that good of course. I'm not going to invest any of them. Looking for alternative but I can't find anything. It's not simply about my issue. Many people holding big sum in Banks are looking for alternative. I'm active in few facebook groups and I can see such posts have increased significantly.

As a standalone question it cannot be answered. There are many things you have to consider but the first one is what do you think the inflation is going to be? Also, what other alternatives have you got for investing? How long do you intend to hold your investment? Is it you pension money or you dreams money or you money for betting? The rate itself, 7% is quite good, but as said, if inflation is 8%... you'd be loosing.

Is the 7.71% from long-term savings, more like fixed deposit?
Well, it depends on how long it's required for investors to lock their investments and have the 7.71% return. If you consider inflation and possibility of crisis, it may not be a good idea. It could however can be considered a fair return if it's short-term.
 I'll probably invest in good things that are likely to increase in price alot in the future especially to help increase their production, increase their supply and keep price from getting to high due to high demand. This could still benefit you in terms of returns, plus you'll have things that will help sustain you during scarcity, crisis or inflation.

There are many options when it comes to investments especially in Bangladesh.
1. Let us get crypto out of the question since the banks there does not allow trading and holding any kind of cryptocurrencies including bitcoins which does mean, if you do wanna do that, you have to take the risk on your own.
2. Investing in international stocks might be a really good idea, some stocks would work for long term investments like apple for sure
3. Investing in property for the long term might be helpful but it would definitely require some minimum amount of investment which is not really something that would perse attract a lot of people since it's not just complicated but at the same time during COVID it's hard to do legal documentation.
4. You can always use online banking, like DBS, which I personally use, it should be available there for sure. For me Indian local banks had a lot of restrictions and so did the Ukrainian banks but I always found DBS specifically helpful and they are also good with international transfer and cryptocurrencies as well, therefore you can try investing there as well.
5. Investing in startups meticulously might turn out great.

There are a lot of options and opportunities right now even a local home based business can shine though.

Best of luck

I always think that you can't put all the eggs in the same basket. For investment, it is a better choice to choose the right investment target and the right amount of capital. Especially when you have a large amount of money, it is the best choice to choose part of the stock market, part of the cryptocurrency, and then put part of it in the bank.

Interest rates in Bank in Bangladesh is below 5% now. In some Banks, it's 2%. People with extra fund used to invest in sanchaypotro (Savings Certificate) for safe and good return but in recent announcement, interest rate has been decreased to 7.71% if the total invested amount is above 3 million BDT. Isn't it a good rate? I don’t have a clear idea on it. Need to check more.
If it isn’t a good one, where will people invest the amount? Stock market? In recent days, Dhak Stock Exchange and Chattogram Stock Exchange has seen the ATH in index and for most of the stocks. Is it possible that another bull run will be occur in the near future? This is true that when people have less interest rate, they tend to invest in stock or any other opportunity they have. Due to the Covid, there’s not a lot of option available at the moment. Is it worthy to have a look and draw a pattern on Stock Market return vs Interest rates?
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