Is it better to save money or invest it?

[twister]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

Thats being done because the inflation is eating it up. You got 1 billion people there that some need welfare, of course your government will print money.

You always have to look at the net interest rate. If you inflation is like 50% and your government gives your 51% on deposits, you dont get 51% return you only get 1% return....

So yea. If your annual interest is like 10%, then the inflation is easily 7-8%, so you also get only 2%, and good luck with that becoming rich lol....

That's true and it's not even 2 % return. Apart from the inflation the market value of your investment would be even less after an year. Say you could buy something now for $100, in a year the value of that same thing would get increased by at-least 10%. So where's your ROI?

[tyz]

I would say it depends on what you can risk and how the inflation rate for your currency is. If inflation rate is high, saving money does not really make sense. If you need the money to buy food and clothes (basic things) then saving is better than investing.

[Dotakels]

I would say it depends on what you can risk and how the inflation rate for your currency is. If inflation rate is high, saving money does not really make sense. If you need the money to buy food and clothes (basic things) then saving is better than investing.

If the inflation high but, if the inflation is low the recommended for you is to save and your salary must higher in the inflation rate so that you can save great.

[Sithara007]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

Thats being done because the inflation is eating it up. You got 1 billion people there that some need welfare, of course your government will print money.

You always have to look at the net interest rate. If you inflation is like 50% and your government gives your 51% on deposits, you dont get 51% return you only get 1% return....

So yea. If your annual interest is like 10%, then the inflation is easily 7-8%, so you also get only 2%, and good luck with that becoming rich lol....

But what about the other countries which are offering 2-3% interest rates, are they not facing any kind of inflation? It's not possible that they are having 0% inflation.

[GreenStox]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

Thats being done because the inflation is eating it up. You got 1 billion people there that some need welfare, of course your government will print money.

You always have to look at the net interest rate. If you inflation is like 50% and your government gives your 51% on deposits, you dont get 51% return you only get 1% return....

So yea. If your annual interest is like 10%, then the inflation is easily 7-8%, so you also get only 2%, and good luck with that becoming rich lol....

That's true and it's not even 2 % return. Apart from the inflation the market value of your investment would be even less after an year. Say you could buy something now for $100, in a year the value of that same thing would get increased by at-least 10%. So where's your ROI?

Independent price increase doesnt count it, thats not in the inflation model. Besides prices rarely increase aside from inflation, which is not really a price increase, but a decrease of the purchasing power of the currency.

But of course since its relative it looks like the price ha increased, and its easier to blame the capitalists, than the socialists.

But also you can pre-invest it really easily.

For example if the INR would have 100% interest and 99% inflation then you can keep your currency in the bank getting 1% return a year, and by the inflation lowers itself to 1%, you would really have made 99% return in a long term.

But this only works if there is proof that the YOY inflation decreases, if the government is incompetent and just prints money and causes hyperinflation, then its a gamble and not recommended.

But if they just had a serious problem, and now they are at 99% inflation, and its decreasing, then i would invest in that currency because after a while the return will really by 99% after the inflation gets to 1%.

So i would rather invest in a currency with 100% interest and 99% inflation, then in one with 2% interest and 1% inflation. The net return is the same but the first one has more potential return in the future 

[Natalia_AnatolioPAMM]

I would say it depends on what you can risk and how the inflation rate for your currency is. If inflation rate is high, saving money does not really make sense. If you need the money to buy food and clothes (basic things) then saving is better than investing.

shortly and so right. cannot add anything  more

[aso118]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

You should look at the real interest rate, not the nominal one.
This website will give you an idea
http://data.worldbank.org/indicator/FR.INR.RINR

[Sithara007]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

You should look at the real interest rate, not the nominal one.
This website will give you an idea
http://data.worldbank.org/indicator/FR.INR.RINR

Thanks a lot for the link. That is really informative. In previous year, it's even negative...that's shocking.

[freehorizon]

In modern economy, when you save in the bank, the bank actually invests most of your money in the economy.
From the economy point of view its better if you invest your money, but from a personal point of view there are times when its better to really save your money.
But, it also depends on the currency used. In fiat currency its not worth to save because of inflation, while in Bitcoin it is worth to save for the long run because it is deflationary.

[bryant.coleman]

It is foolish to keep our savings in the form of fiat currency, as it is always losing value due to inflation and increasing monetary supply. But in case of Bitcoin, the reverse is true. The monetary supply is limited, and as the adoption increases, the real value will also increase.

[twn]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

The Indian Rupee is a very weak currency, which is undergoing devaluation at a rate of 7% to 10% every year. So even if you get a 10% interest on your INR deposits, effectively, your net holdings are not increasing.

Bank rates always lower than country enflasion points. Thats how banks makes money

[Sarthak]

Is it better to save money in bank or invest it online, in real estate or maybe gold?

"An investment in knowledge pays the best interest." - Benjamin Franklin

See warren Buffet, he wouldn't be so rich if he had been saving his money for all this time instead of investing
Don't invest what you can't afford to loose Invest responsibly!

Happy Investing Happy Money-Making

[Dotakels]

Is it better to save money in bank or invest it online, in real estate or maybe gold?

"An investment in knowledge pays the best interest." - Benjamin Franklin

See warren Buffet, he wouldn't be so rich if he had been saving his money for all this time instead of investing
Don't invest what you can't afford to loose Invest responsibly!

Happy Investing Happy Money-Making

Yeah invest only that you can. Dont invest yiu cannot afford. And you can make money even if you only sitting on your sala's and watching movie by investing. Investing is so great

[bryant.coleman]

Bank rates always lower than country enflasion points. Thats how banks makes money

I disagree with your observation. Banks lend money at higher rates than they give to their depositors. That is how they make profits. For example, if a depositor is paid 4.5% per year interest by the bank, it might charge 7% or higher for the loans which it gives out.

[GreenStox]

Bank rates always lower than country enflasion points. Thats how banks makes money

I disagree with your observation. Banks lend money at higher rates than they give to their depositors. That is how they make profits. For example, if a depositor is paid 4.5% per year interest by the bank, it might charge 7% or higher for the loans which it gives out.

NO! Here is how it really works:

1) Central bank counterfeits money directly and lends it at 0-1% interest rate to commercial banks
2) Commercial bank gets that counterfeited money in loans, and then lends out 100x more of it than he got (fractional reserve), made up from air, at 7-8% interest  to suckers
3) Average Joe takes a house loan at 7% interest
4) Average Joe cant pay the house loan, so the banks confiscates his house
5) The bank got a real house in exchange for printed air money.


So basically all the banking sector does is counterfeits money.

Thats how the banking ponzi scheme works 

[michietn94]

Is it better to save money in bank or invest it online, in real estate or maybe gold?

"An investment in knowledge pays the best interest." - Benjamin Franklin

See warren Buffet, he wouldn't be so rich if he had been saving his money for all this time instead of investing
Don't invest what you can't afford to loose  Invest responsibly!

Happy Investing  Happy Money-Making

The problem is to predict an exact time to invest and the right time to withdraw it.
For me, I better save it rather than invest ( low risk and low interest ) But if you have much money,  Invest will be a good option although it contains high risk also high interest

[BTCevo]

Is it better to save money in bank or invest it online, in real estate or maybe gold?

"An investment in knowledge pays the best interest." - Benjamin Franklin

See warren Buffet, he wouldn't be so rich if he had been saving his money for all this time instead of investing
Don't invest what you can't afford to loose  Invest responsibly!

Happy Investing  Happy Money-Making

The problem is to predict an exact time to invest and the right time to withdraw it.
For me, I better save it rather than invest ( low risk and low interest ) But if you have much money,  Invest will be a good option although it contains high risk also high interest

Yeah thats why you have to learn from the expert trying to invest and do it in a right time and a right place too. If you plan to save it in the bank you only get so low interest can't even buy things from it because you must pay the administration fee and other things but if you know how to invest you really get a lot of it and sure its a high risk but high gain

[Dotakels]

Is it better to save money in bank or invest it online, in real estate or maybe gold?

"An investment in knowledge pays the best interest." - Benjamin Franklin

See warren Buffet, he wouldn't be so rich if he had been saving his money for all this time instead of investing
Don't invest what you can't afford to loose  Invest responsibly!

Happy Investing  Happy Money-Making

The problem is to predict an exact time to invest and the right time to withdraw it.
For me, I better save it rather than invest ( low risk and low interest ) But if you have much money,  Invest will be a good option although it contains high risk also high interest

Yeah thats why you have to learn from the expert trying to invest and do it in a right time and a right place too. If you plan to save it in the bank you only get so low interest can't even buy things from it because you must pay the administration fee and other things but if you know how to invest you really get a lot of it and sure its a high risk but high gain

Its all  depend to the owner of money he/she can decide what she/he will do to their money. If  they want to have a big money and they want to earn a profit in their money they must should invest,but if they want to keep or to have a extra cash so that they can have a money if theres a emergencies they must should save. Its all depend on the owner of money.

[Snorek]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

Thats being done because the inflation is eating it up. You got 1 billion people there that some need welfare, of course your government will print money.

You always have to look at the net interest rate. If you inflation is like 50% and your government gives your 51% on deposits, you dont get 51% return you only get 1% return....

So yea. If your annual interest is like 10%, then the inflation is easily 7-8%, so you also get only 2%, and good luck with that becoming rich lol....

It is not always to become rich, some people are just afraid to lose any money, they are fine with only keeping their money 'safe' in bank where it could grow a little above inflation.
Investing is about earning and saving is about security. These are 2 different things. Of course you won't get rich just by saving money...

[Dotakels]

But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.

Thats being done because the inflation is eating it up. You got 1 billion people there that some need welfare, of course your government will print money.

You always have to look at the net interest rate. If you inflation is like 50% and your government gives your 51% on deposits, you dont get 51% return you only get 1% return....

So yea. If your annual interest is like 10%, then the inflation is easily 7-8%, so you also get only 2%, and good luck with that becoming rich lol....

It is not always to become rich, some people are just afraid to lose any money, they are fine with only keeping their money 'safe' in bank where it could grow a little above inflation.
Investing is about earning and saving is about security. These are 2 different things. Of course you won't get rich just by saving money...

Saving in the banks will decreased the value of your money because, as years passes by the value of the money will be increased so that if you don't spend your money that in the bank its value will decreased . Example your money is 200$ if you put it in the bank after 5-10 years maybe its value is only 180$ . So that its better to invest although there a risk.