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

It seems that the elite are rattled again with these papers, they're now trying to cover up things so the damage won't spread even further and so they can continue what they're doing, seems that a lot of rich people are being exposed again.

I don't know....what about ETH going PoS?  That's a coin without a cap and yet it's currently #2 to bitcoin's #1 status.  And yeah, there are other PoS coins that are super risky but others that have decent potential and sorta-stable prices (like Polkadot and Tezos for example).  Anyway, all of those coins have some value, and you can earn what amounts to interest on them, so you do receive real income by holding them.

Yeah, and I remember a time when PayPal was actually paying interest on funds held with them, and it was something like 4%.  That was way back in 2006 or so, and my how times have changed.

And this can be easily corroborated on your own, if you buy something you receive a ticket for your purchase, most likely even if you do not keep them on purpose you probably have a few around your house, if you compare the price of the product back then with the price of the product right now you will have an idea of the real inflation during that time.

Obviously this is not perfect but it gives an idea of how high inflation really is where you live and how much higher it is compared to what the government reports.

Banks are a very bad places to be saving money, you’re not going to be getting anything that is good at all from saving money in the bank. Their rates are always the worst ever you’re going to get. I used to make use of some private companies for savings, and some of them would be giving 12% to 13%, but as of recent I noticed that one,out of the two that I was making use of, has reduced their interest rate to 5.5%.

I wasn’t happy when I saw that, so I had to make a decision to start putting my savings money into investment in bitcoin, although I still feel that’s some kind of risk that I’m about to take, or I might not do it.

I think I will be safer keeping my money in cryptocreency right there in my wallet. 
Reasons my money will be safe with me in bitcoin is

1. No inflation fears rather prospect further growth.

2. No third party interference like banks.

3. Freedom to transact anytime I wish.

4. Blockchain transparency.

I can't talk about Bangladesh because I am not living there and I have no idea how finances are there. However, the best way to make money as far as I know is gold, that is before crypto became a thing for me of course, if you are not interested in crypto (which majority of the world is still not invested) then gold is by far the best thing you could do.

You start with buying tiny amounts and then you end up with buying a good amount and make a profit from the increasing value of it, when you have enough then you can buy a rundown house and then fix it and then you could either sell it or rent it. With the rent income you could collect it and put your other savings as well and keep on buying small amounts of gold, faster this time until you can buy your second.

Or you could sell the first one, get another run down and repeat that as long as you want. This is what my uncle did for years but with cars, he bought horrible old cars and fixed them up to make them look brand new and work perfectly and sold them for as high as 3x the price.

The general trend for interest rates paid by banks has been on a downwards trend for a long time now. In my country back in 2015 it was possible to find banks offering saving accounts with a 5% rate on them, now it is difficult to find even 1% being offered. It will lead people to either accepting that inflation will end up eroding their savings at a certain rate or you will have to start investing in certain assets. At the end of the day central banks want people to spend their money to keep the economy going, which is why they have forced rates so low. Everyone should really learn more about finance and whether the risks of investing in places like the stock market are acceptable to them, as it may soon be the only place you can get a decent return.

Totally agree, this is evident with how unprofitable it is to have a savings account these days, back then it was around 2 digit interest rates but right now even a 2% is the most generous enough number.

The average people can't get through the company directly when it comes to investing in them, they need to get through the bank because the company has to pay these people and bank is the best way for this company to put the payments for those investors.

Usually government adjust bank interest to control inflation. I think it will be better if people invest in companies directly rather than go through bank. Some bank lend money for unproductive things which mean it's not help to reduce inflation. But if we invest our money to companies directly then the company will produce more product and help the balance of supply and demand between money and goods. I hope companies can get fund directly from investors rather than lend money from bank. I hope people know how to invest in companies directly.

You may be surprised to know the balance in my bank account because to be honest I only use it to receive my salary from my job. I only have 3-4 dollars as a condition to be able to withdraw the balance from the bank account after I receive my salary. I'm used to not keeping anything in my bank account for a long time because it doesn't do me any good. Expecting small interest from the bank as profit sharing is not worth it compared to investing in bitcoin long ago. The two investment asset I am most interested in are cryptocurrencies and gold and I have never had any interest in investing in bank.

Only the lazy people will save money into the bank for interest. I know we have to keep our funds in the bank anyway. But locking your funds for a period and return very low isn't a good decision. Rather than just invest in a solid business where is less risk, doesn't matter profit is less, but it will more than banks. A lot of solid business around us. Doesn't necessarily just wait for saving certificates. But it really depends on your real-life situation what you will do with your funds. I just expressed what I will do if I have enough money. On the other hand, everyone isn't familiar with the stock markets and there is a risk as well.

When you have to decide between different investment options, your first step should be to determine what split percentage of your investments will suit your circumstances the best. A balanced investment portfolio will have a good mix between low/medium/high risk investments.

Interest rates on capital deposits in saving options at a Bank is usually a low risk investment and that is normally your safety net when something goes wrong with your medium and high risk investments.

So if you are still young, I will suggest an investment split of 50% high risk investments and 25% medium and 25% low risk ...where Crypto investment will be in the high risk investment category and Bank interest in the low risk percentage. Older people cannot follow this strategy and they normally split the percentage in 50% low risk / 25% medium risk / 25% high risk. 

Bangladesh is one of the most densely populated countries in the world. In a country like this one, I'd rather let my money go into real estate.

Interest rates rise and fall. In the same way that the stock market also experiences bearish and bullish cycles. But a real estate property under the country's circumstances is most likely rising regularly. And if you are particularly from the capital city itself, which has the highest population density among cities in 2021, at least as per Statista, with 36,941 residents per square kilometer, real estate is indeed a good investment option.

The problem with the inflation figure is that it is an official figure that is best not to trust but to always assume that it is higher, because it is designed so that people are not shocked. In general, it is cherry-picked to suit the governments and it never takes into account asset inflation, which is what usually beats inflation.

If the theoretical official inflation is 5% but houses have risen by 10% and the most representative index of the country by 8%, you can count that real inflation is at least 3% higher than the official figure.

Traditionally, investors have two easy ways to beat inflation, with quality REal Estate and with quality stocks as well, although more recently we have Bitcoin as well.

This is something that has been know for some time, many people prefer to play it safe so if the interest rates given by banks are too low then those that have some money around need to find a way to get better returns as they know inflation will eat away the purchasing power of their capital.

Governments and banks do this on purpose and it is obvious we will see more of this to try to encourage people to invest in the stock market so it goes up, the problem with this is that it has the tendency to create bubbles and make them bigger creating bigger crashes in the process as well, so I think this could be counterproductive especially when the economies of the world are still recovering from the aftereffects of the pandemic.

Indeed, people should stay away from stock market, especially from those old stocks as of now. But who knows, it'll be more preferable when we'll have strong base for e-commerce platform along with other industries. Not only this, recent IPOs were quite profitable for investors as far i remembered. Although investing into real estate is still quite good for those who know how to play around.   

I think you are comparing apples with pineapples, they only sound alike and you can eat them... and that is all they have in common. It is mostly a question of competitivity, those countries whose currency is less competitive, usually because their economies are not competitive enough, will have to offer more competitive rates to people who want to hold them or use them.

RE PoS, it is a completely different game and a 10% for me would be clearly not enough compared with the risk. Either the network is clearly growing or those interest will come from coin printing. If the supply is limited, then the cost of keeping the network safe will be too high and will kill it. Super-risk that should be paid at least a 50% in my view.

Celsius network still offers up to 17% rates.

https://celsius.network/earn-rewards-on-your-crypto

The global price of oil appears to be rising, which raises shipping prices and basic cost of manufacturing. Supply chain issues with semiconductors and other vital components also appears to be on the rise. These and similar precedents could converge to paint a gloomy illustration of long term stock market returns. Short term market plays could be ok. But I wouldn't invest in the market long term due to the outlook appearing bearish. Bull markets are the best time and place to invest as it becomes difficult to lose money.

There are always opportunities, everywhere. Treat it like its a video game. Hunt for the best options. Grind. Gain experience. Level up. Don't take huge risks until you're confident you can win at whatever investments you're making.

Holy cow!  Are you telling me deposit interest rates at banks in Bangladesh are that high?  In the US if you start a savings account at pretty much any bank, interest rates are near zero.  Less than 1%, anyway, and it's been that way for years because the Fed has kept interest rates at rock bottom levels.  That's why smart folks put their excess money into the stock market or crypto or anything else that has a chance of beating inflation.

Shoot, if I could open a bank account in Bangladesh and earn anywhere near 7% I'd jump at the chance--if I had extra money, that is.  But if your inflation rate is near 5% and interest rates are dropping below that, then yes, I'd consider other forms of investment.  If you keep your money in a bank (checking accounts excluded), you'll basically be losing money.

It's amazing that there are PoS cryptocurrencies that can earn you 10% or more per year, and I've heard of people investing in DeFi projects that earn far more than that.

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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