As the knowledge towards sound investment opportunities grow, more and more people are finding it hard to resist the pull of fixed term savings rates bank accounts; and why not? This investment asset carries a number of advantages over other forms of investment. If you are looking for the perfect blend of low risk-high reward bank instruments, it is hard to look past the value that fixed term bank savings accounts offer.
Here are 5 reasons why one should pay attention to fixed term savings accounts:
- Risk mitigation. Sure, it is also sexy to invest in assets like stocks, mutual funds, or binary options among others but it does not mean those assets will assure you of solid returns. In fact, if there is any important lesson that one should take note after the 2008 economic crisis, it is that safer investment choices are in vogue, unless until the economy has fully recovered. Fixed term savings accounts offer minimal risks in terms of investment without compromising your money’s potential to earn.
- Profit. Fixed term savings accounts offer earning potential of up to 5% per year while savings accounts barely crack 1% and higher. Investors looking to balance risk and profit should take a good long look at fixed term investments to see if there is any other option that provides just as much return without incurring bigger risks.
- Fixed Term investments preach fiscal responsibility. The fact that money is tied up in fixed term investments mean people are less compelled to go out to spend it. This is advantageous for people looking for a reason to save, and not spend.
- History. Fixed term savings investments are not new; hence, the system has been tested again and again by many investors. Who says you have to reinvent the wheel to earn? By selecting more proven investment methods, you are more likely to reap the rewards of a sound investment.
- Competitiveness. There are many banks that offer fixed term savings accounts and these banks tend to outdo each other in terms of the attractiveness of the offer. Of course, that can only mean good things for the investor. Find the best offers and you’ll put your money in a better position to succeed.
Fixed term savings accounts are great ways to save money without embracing unnecessary risks. Take a good long look at the offers and pick the one that’s best for you.