Joanna James
Amongst the many lessons to be learnt from 2020, the year COVID-19 hit globally, is that nothing is certain and both health and wealth could be adversely affected in an instant. To help one have a more secure financial base, here are some investments worth considering.
Also known as "certificates of deposit", time deposits usually provide a higher interest rate than regular savings accounts. Depending on the bank, these time deposits are for a set period and can vary from several weeks to several years. However, the nature of such accounts are such, that you cannot withdraw the amount deposited till maturity is reached; if you do so, it will normally incur a penalty. Ideally, one should look at the different time deposits on offer and their interest rates, though do make sure to choose a reputed bank that is backed or approved by the state bank as well.
You can also consider investing in government or treasury bonds. This is a debt-based investment and essentially you are loaning the money to the government which usually issues such bonds through government-sponsored / approved institutions; this is done when it needs to raise money for infrastructure initiatives or new projects. In return, for the agreed-upon period, you will receive a set interest rate on your investment paid periodically and will get back the principal deposit at the time of maturity.
Real estate offers a relatively high-yielding investment that promises long-term financial rewards as well. Keep in mind, land value especially in commercial areas is always increasing. Added to this, is that not only the land value but the property value appreciates with time too. A good example of this is the option to invest in luxury Colombo apartments in Sri Lanka's commercial capital including those offered by properties such as Cinnamon Life. Making the right real estate investments will also lead to a steady and higher flow of cash through aspects such as rental income.
Certain banks will offer high-yielding saving accounts which feature comparatively higher interest rates than regular savings accounts. In some countries, such accounts are offered by online banks though you do need to make sure such entities are backed or approved by the state bank. Sometimes, banks will offer what called "progressive saver" or "bonus savings" accounts which come with added amounts being credited if you do not withdraw money over a set period. Such investments and the interest earned offer high liquidity, though do keep in mind aspects like inflation means the end value may not be as much.
Those investing in dividend stock funds will earn a portion of a company's profit which is generally paid quarterly to shareholders. With such stock, you will gain cash in periodic periods, while you can potentially earn more due to long-term market appreciation. You can consider buying divided-paying stocks from several companies and have them under a dividend stock fund which will reduce your risk too. However, choosing the right companies is key and you have to be mindful that stock markets are subject to external factors such as a global pandemic.
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