Interest rates, flexible payment terms and loan duration are three basic things to take a look at before accepting any loan offer. But you also need to consider your need for the loan and your ability to repay same. Here are three questions to answer before accepting any loan offer.
Investing your money in a secure financial instrument that provides good returns is key to building financial resilience. Having money and letting it lie idle is not the best way to manage it. Inflation and a fluctuating exchange rate can decrease the value of your money, no matter the amount.
Here are three investments vehicles you can put your money in.
Savings Account
A savings account enables you to save your money and earn interest on it. The interest you earn depends on how long you save, and the interest rates being offered by your bank or financial institution. Most savings accounts offer flexibility in terms of how much you can save at any time and allows you to make withdrawals when you have a need for it. Besides giving you the chance to earn interests on your money, some banks require that you operate a savings account for a minimum of three months before applying for a personal loan.
Fixed Deposits
Investing in fixed deposits can get you some of the best interest rates. Most banks and financial institutions offer you the chance to deposit your money for a fixed term (6 months, 12 months or more) and earn a fixed interest on it.
The longer your money remains in a fixed deposit account, the more you earn on it. Fixed deposits can also be used as security when applying for personal loans and business loans.
Treasury Bills
Unlike fixed deposits, treasury bills are issued by the central bank on behalf of government and come with fixed interest rates. Currently, the available instruments are the 91-day and 182-day treasury bills, as well as 1- and 2-year notes.
If you want to put your money in investment instruments with the best interest rates, you should consider operating a savings account or investing your money in fixed deposits and treasury bills. Make the right choice, but please be sure you are investing your money with a regulated financial institution and beware of too good to be true interest rates.