FX.co ★ Five alternatives to bank deposits

Today, amid a global economic downturn, many market participants are seeking to find reliable ways to preserve their savings. Previously, a bank deposit served as an option. However, times have changed, and experts consider other alternatives more serious investments in the future. To increase your savings, you may use many financial instruments.

Corporate bonds

Corporate bonds are one of the most important financial instruments, experts say. This is one of the most popular, affordable and low-risk tools of the stock market. The entry threshold is low: for ruble bonds, the threshold is 1,000 rubles, for euro bonds it starts from 1,000 US dollars. You can earn up to 10% per annum on ruble bonds. In terms of reliability, bonds are not inferior to a bank deposit. They are suitable for novice investors. The disadvantage of bonds is that they are not insured. If the issuer goes bankrupt, all investments will be lost.

Crowdfunding

Now, crowdfunding is a very popular financial instrument. It is a collective financing of any business. Earlier, only large entrepreneurs with a capital of several million dollars participated in crowdfunding, but now the middle class with small amounts is leading in this type of investment. If you have a loan agreement (crowdlending) with a company, you can get 20-25% per annum. Many people are afraid to invest in young companies, as there is a high risk of losses. However, the number of investors in startups is growing.

Structural products

This financial product can be purchased from a bank, broker or management company. It is an investment portfolio formed from two or more financial instruments: bank deposits, real estate investments, precious metals, securities, etc. Demand for options and bonds is often the highest. Financial assets are distributed in such a way that the profitability of the risk-free part covers possible losses of another share of investments. The entry threshold here is high: for a dollar product, the minimum threshold is 5,000 or 10,000 US dollars, for a ruble one, the threshold is from 100,000 to 200,000 rubles.

Stock dividends

Stock dividends are companies’ shares that pay dividends. In rubles, income can reach 13-15% per annum, and in dollars - 2-4%. The shareholder will receive income if the company operates confidently in the market and is profitable. Shares are one of the most liquid instruments; they can be sold at any time. Experts believe that most of them are able to survive the crisis, recession and market collapse. You only need to be patient and wait for quotations to recover.

Real estate

Real estate is the most effective investment tool. Experts advise to focus on commercial housing, for example, to have an agreement with the company that manages the apartment hotels. The yield can reach 10% per annum. For rental, it is best to use a mortgage apartment abroad, for example, in Germany. The entry threshold for this market is not too high - from 30,000 euros. You can also become a member of a real estate unit investment fund abroad, including those listed on the stock exchange (REIT).