Newshub, Priscilla Dickinson, 23 August 2019
For people who want to grow their savings, given the worldwide economic slowdown and low-interest rates, currently, there's not much of an incentive. Short of stowing cash under the mattress, should serious savers grin and bear current interest rates of around 2 to 3 percent, or chase higher returns in the hope for an economic rebound?
Short of stowing cash under the mattress, should serious savers grin and bear current interest rates of around 2 to 3 percent, or chase higher returns in the hope for an economic rebound?
The answer lies in risk and return: how much risk you're prepared to take for a potentially higher return in future.
Leighton Roberts, co-founder of online investment platform Sharesies said that around 72 percent of Kiwis use savings accounts and term deposits as their primary place to hold investments and will be concerned to see their rate of return drop.
"In a low-interest environment, investing your money is likely to give you the best bet at growing your wealth.
"But it's also important to remember that no matter what you do with your money, having a regular saving and investing habit will put you in good stead," Roberts said.
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