WHERE CAN MONEY GROW? FINANCIAL EXPERT PRIA MASSON TANWAR TALKS OF FINANCIAL INVESTMENTS De-globalization could be here to stay – park your money where you have residential and legal stability Savings accounts and fixed or term deposits are among the safest places for your money. However, world over, deposit rates are at almost all-time lows and it does not appear to be something that will change soon. Couple this with the trend towards “domestic safeguarding” that seems to have taken over most countries and irrespective of where you live, your money is probably safest where your passport belongs. As disturbing as this sounds, a certain amount of your savings, need to be as de-risked as possible and a savings account or term deposit in your home country meets that end Country Interest Rate Currency/Tenor NBK Kuwait 1.25% KWD 1 Year Habib Metro Pakistan 6.25% PKR 1 Year State Bank of India India 6.10% INR 1 Year National Bank of BahrainBahrain 2.50% USD 1 Year Riyad Bank Saudi Arabia 1.75% SAR 6 months HSBC Oman 1.6% to 1.8% USD 1 Year Maybank Phillipines 1.75% Peso 1 Year Rakbank UAE 1.50% USD 1 Year European Region Eurozone approx 1%-1.2% EUR 1 year United Trust Bank United Kingdom 1.16% GBP 1 year Bank of America America 0.05% USD 1 Year Source: Banking Websites The concept of money has always been relative even during the barter system - a dance between how much to give and how much to receive in return. The concept of risk and return has the same idea at its roots. We risk our money each time we interact with it. When we buy something, we risk the realized return of what we buy. If we have money as cash, we do risk inflation which will mean the real value of that money has fallen. Investments and making your money grow, is therefore, a dance between the same risk and return. At a time of a pandemic, safety has come to the forefront. Physical safety, emotional safety, and safety of wealth. However, with so many unknown parameters that drive wealth value, it is difficult to figure out where to put any excess money and how to rebalance existing investments to effectively safeguard the hardearned money. With that in mind, let us delve into some options of what you can do for financial investments, three popular investment avenues and my view on the way forward for them. commerce 30 September 2020 www.bahrainthismonth.com
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