Finding new ways to earn interest.

in #blogging3 days ago

Money sitting still is money going to waste.

Maybe it's just from being involved with crypto for so many years but it hurst to have money in an account not earning any yield. Now it's not going to be 40% like hive on Binance or 15% on HBD onchain.

For some reason it's very hard to get any returns on fiat from banks. Interest rates in Europe are very very low. In Ireland most banks are under 1% on flexible savings with very limited option for investment on a small scale.

I was trying to find ways of investing under 10K but there are very few that have any returns and then you pay 33-50% in tax from any profits that you do make.

It's very hard to make any money for a regular person and break out of the working class cycle that we are stuck in from an early age. At the moment the best thing that you can do with money is to try and repay your mortgage early which saves a lot of money rather than earning you any but is still a net win.

We managed to make a 10K payment off of our mortgage this year which had a $300 penalty since we are on a fixed rate but it will save us 35K in interest payments over the course of our mortgage and will become a net profit three months from now. That's a saving of $100 a month that we will not be paying any more and the equivalent of 9% APR on the 10K that we paid to the bank.

Looking at savings options in Ireland you are doing well to get over 2% APR on your savings before taxes which will bring it down to about 1%.

Revolut

This is the easiest option to use as they have no paperwork and make it very easy to move money in and out of each account. They say 2.5% but that is for premium users and the actual rate on my app is 1.7% or 1.1% in reality.

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Raisin bank.

They have fixed term options as well but we have plans for the next couple of years and want access to funds. With all of that we are looking at 2.25% or 1.5% in reality.

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Bunq

This seems like an interesting option as they offer a competitive interest rate but also a full banking service with joint account and multiple cards.

We have a joint account in an irish institution but it has no savings rate and limited facilities.

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All of this is about savings rather than investments. I already have investments in stocks and crypto's but all of these are volatile and not always accessible on demand.

Other options moving forward are precious metals, whiskey, race horses and long term property but come with a lot of risk and no guarantees. It's also important to keep some money ready to go for when a good opportunity might present itself in the years to come rather than having everything tied up in investments.

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Wow, some really shite returns there!

It's tough in the fiat world. I've got ISAs floating just above 4%, Lloyds regular saver is 6%, there are some deals out there, but often time limited then you have to switch which ruins the ISA play of course.

And the thing is that these are a massive increase on a few years ago when you were getting zero on savings.

The country is full of money at the moment and banks don't want more savings. The want people borrowing and generating profits for them.

6% isn't too bad, at least you will see some returns.

We had one scheme growing up when the government was short of money and you got £1 for every £4 saved in their scheme if you locked it in for three years tax free. Max £100 a week but i remember my dad did it for all four of us in the house and got a big payment on the return.

Could do with one of those again.

Situation is similar in Portugal, you're lucky if you can find something that gives you ar least the inflation rates. Still, better than a few years back, when one of my backs was offering a product with locked money for 6 months for a whooping 0,000% return (and no, it's not a typo...).

With the crazy rate of inflation in europe right now it's hard to keep up with the price of living.

If only we could find a better way to generate returns and increase the bank roll. I'm constantly looking but apart form crypto not much else is out there.

I'm now starting to invest in etfs with accumulation, since they have compound interests. And there are retirement funds that have tax benefits here, with the bonus that the tax on profits is much lower if you hold it for 8+ years than in regular stocks (28% tax vs 12%, I think). Guess each country will have different nuances, it's always good to have some diversification.

I think fintech apps are at least doing better in this front than Tradfi banks. I just want the flexibility of having access to my funds whenever I need them, in terms of interest rates, I'm okay with at least a single percentage use if the funds are for short to medium term use.

Fintech is helping the situation a lot. At least now there are some options out there to make it more competitive and you can move your money very easily between apps and accounts.

I use revolute to save and invest but that bunq app looks like a good option as well. One that i will research at least.