Too many people sit with their money stuck in a savings account earning them 0.01% interest or some other incredibly low rate well below inflation.
#shorts
This is because in the past that was the only realistic way for most people to save money - things like investing which could pay much higher returns required large minimum deposits and would charge expensive management fees and transaction fees.
All of this has now changed with platforms like Trading 212 and Freetrade offering access to investing with incredibly low minimum deposits with no (or very low) fees.
There are automated tools that enable you to deposit money into large index fund ETFs and other investment vehicles which have continuously earned 7 to 9% returns on investment over a period of over 100 years on average.
Your money is most definitely at risk and the volatility of investing in the market is far greater but if you're saving for the long term, your money sitting in a savings account is actually losing value every year due to inflation.
Although everyone has to make their own decision as to what level of risk they are happy with, this is the way that rich people become even richer and it is now open to the masses.
So why is everyone still sitting with their money stashed away in a pointless savings account?
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If you open an account using the link above, you will get a random share worth up to £100. I will also get one if you choose to sign up using the link.
WATCH NEXT
○ Investing for beginners - https://youtu.be/5_Z5Zw4t72c
○ Getting started on Trading 212 - https://youtu.be/SMyseyHUVik
○ How to pick stocks that win - https://youtu.be/9t9rAND40fg
○ Trading 212 Portfolio up 12% in 3 months - https://youtu.be/i3tIvnXYu38
○ Stocks & Shares ISA secrets - https://youtu.be/39IA7Als4bE
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
#shorts
This is because in the past that was the only realistic way for most people to save money - things like investing which could pay much higher returns required large minimum deposits and would charge expensive management fees and transaction fees.
All of this has now changed with platforms like Trading 212 and Freetrade offering access to investing with incredibly low minimum deposits with no (or very low) fees.
There are automated tools that enable you to deposit money into large index fund ETFs and other investment vehicles which have continuously earned 7 to 9% returns on investment over a period of over 100 years on average.
Your money is most definitely at risk and the volatility of investing in the market is far greater but if you're saving for the long term, your money sitting in a savings account is actually losing value every year due to inflation.
Although everyone has to make their own decision as to what level of risk they are happy with, this is the way that rich people become even richer and it is now open to the masses.
So why is everyone still sitting with their money stashed away in a pointless savings account?
GET A FREE STOCK IF YOU OPEN A TRADING 212 ACCOUNT
○ Use my link: https://www.trading212.com/invite/FzYbCfTM
If you open an account using the link above, you will get a random share worth up to £100. I will also get one if you choose to sign up using the link.
WATCH NEXT
○ Investing for beginners - https://youtu.be/5_Z5Zw4t72c
○ Getting started on Trading 212 - https://youtu.be/SMyseyHUVik
○ How to pick stocks that win - https://youtu.be/9t9rAND40fg
○ Trading 212 Portfolio up 12% in 3 months - https://youtu.be/i3tIvnXYu38
○ Stocks & Shares ISA secrets - https://youtu.be/39IA7Als4bE
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Lots of people hold money in savings account that pay as little as 0.01 or even less at rates way below inflation, and that is because until recently, that was the only good way that you could go and save money for the long term, because the other options Were so expensive if you wanted to get higher returns by investing your money, you had to deposit very large minimum amounts. You would have very large management fees and you'd also have to pay quite expensive transaction fees. On top, this meant that these options were only available to wealthy investors. Today, all that has changed with platforms like trading 212 and free trade.
Anyone can go and invest their money with very low initial amounts and with no or very low fees. Yes, your money is at risk and, yes, there is much greater volatility, but over the last 100 years the average rate of return has been around seven to nine percent for index funds, like the s p 500. times really have changed to why people are still using Savings accounts and losing money in the process.
Yaaayyyyy Sasha shorts 😊😊😊
“Investing” is not saving its gambling
I’m just curious to know why do banks offer theses 0.01% savings account if it’s below the inflation rate ? It’s a trap! – Admiral Ackbar 😂
Tiny cup
What if you want to use the money in the short term e.g. for house deposit?
I hope there will be more explanation on this topic. I dont know how to do it
Bitcoin
The investing is not for everyone, you need to have nerves of steel when you stock loses 40% in a week like it was in March. And it requires a very long horizon to bring this mentioned in the video 9% which is not guaranteed anyway. Past performance doesn't mean that future performance be the same.
Got a 2.75% rate on a fixed rate ISA with HSBC. Does the job for me as a student as I've not got a ton of money as it is.
I like this version of quick videos with short tips
I think this is one of the reasons why interest rates have hit the floor. The authorities want people to either soend or invest thier money rather than have sitting idle in the banks. We will actually see negative rates soon IMO.
There is a huge risk of losing money in the stock markets, especially for people who are too emotional or easily scared by sudden moves to the downside.
If we are talking about savings with risk then I still push forward the idea of saving money in different currencies that will weaken against the pound in thelong term. Just open a Transferwise bordeless account and hold Swiss Francs for instance. I did that recently and wasup over £100 when I cashed out. you could argue it's less risky than the stock market.
I find quite scary to invest all my savings in one go (even if there is a fund that had good results for a long time). I prefer to invest some money every month and keep moving the savings to the bank offering the best interest rate
Who’s got a 0.01% savings account?
Quick question, why has my Tesla stock went down this week despite news of the company joining the S&P 500? Love the videos 👍🏻