Get smart with your savings

By iTrust Financial Advisors (www.itrust.in)

Most Indian families have the bulk of their household savings and assets in a bank account. We believe that this is the worst thing that you could do for your money.

Not only are you not going to get rich like this, but you are actually losing money over the long run. Not to mention, the bank is taking advantage of your money. Lets tell you more…..

First of all, we acknowledge that depositing money into a bank account is great because of the convenience and security that it offers us.

Banks are a great mechanism to transmit money from your account to say your mobile phone company or your electricity provider or paying your children’s tuition fees by cheque.

You can receive your monthly salary directly into your bank account, and not worry about its safety. And this is where the problem begins.

If you want to know why this is a problem, its because of inertia. Experience has shown that most Indian families don’t do anything with their surplus money apart from leaving it in the bank account which is often because of a lack of financial awareness. Here are 3 problems you are exposing yourself to if you are guilty of this inertia:

1. You will not get rich: Your bank pays you 3.5% for your money. This is a very low rate of interest earned and will definitely not make you rich, compared to other safe but higher return options you might have access to.