safe investments with high returns

safe investments with high returns
By eHow Contributor 

 A lot of people today have been stung by the current financial conditions, whether in stocks or otherwise. And, as a result, many are running for cover and seeking the safest money investments they can find to shelter their assets until the economy turns around.

We're seeing many investors now moving their money into investments like cash and "treasuries" that aren't going to keep pace with inflation. And although they aren't happy about losing money with any investment, they are settling for losing a little versus losing a lot somewhere else (e.g. the stock market).

I too have taken a more conservative approach with my investment portfolio, but I want you to understand that you can still find high yield safe investments right now if you know where to look! That's the key: most people don't know where to look, so they're settling for break-even or money-losing investments, when they don't have to.

"You can still find high yield safe investments without having to settle for break-even or money-losing assets! And I'll tell you where to find them."

Below, is important information about two of the most secure, high yield safe investments you can make today.

One is a very timely short-term investment that is expected to continue flourishing for the the next 2-3 years.

The other has been a cornerstone investment for many of the world's wealthiest investors for generations because it can deliver both asset security and superior yields. Best of all, it is expected to flourish for the next 25 years and I'm going to tell you exactly why, how and where this is happening!

Things You'll Need
• An open mind
• Desire to make a lot of money
• Money to invest

Instructions

 To find the best high yield safe investments, the first step is to keep an open mind. These days, many people run away when they hear anything related to "real estate".

At the same time, if you ask people whether we are in a buyer's or seller's market for real estate -- most will correctly say BUYER'S MARKET. In other words, great deals can be found and sellers are motivated.

So, before YOU run away, you owe it to yourself AND your bank account to learn about two very timely forms of real estate investment that have the potential of making you rich!

1. SHORT-TERM: For the next 2-3 years, I absolutely believe that foreclosure properties & bank-owned REO properties are the very best investments available to investors today. And I'm talking about across ALL investments -- these investments have the greatest wealth-building potential of all.

2. MID-LONG TERM: For the purposes of this article we're going to focus on a form of real estate investing that few investors understand or even know about: Investing as a silent partner with land developers in Raw Land Development projects.

Raw land development bears no resemblance to other forms of traditional real estate investments that most people are familiar with, such as residential or commercial real estate - which we know are both experiencing big problems these days.

Also, please be clear that I am not talking about "Raw Land investments" (also called "Land Banking") which is where you would buy undeveloped property, sit on it for a period of time, pray for appreciation and then hopefully, sell it for a profit.

"RAW LAND DEVELOPMENT investments" are much different.

You may have heard it said that: "more millionaires have been made in real estate than any other asset type of investment".

To take that a step further, professionally managed raw land developments are the most profitable and secure form of real estate investment!

Below are the steps that professional land developers take to create high yield safe investments with raw land development projects. And this is why they are cornerstone investments for many of the world's wealthiest investors.

Professional raw land developers do not rely on market appreciation for their profits, unlike "land bankers". Developers actually make their money by obtaining government approvals to use raw, undeveloped land for projects such as master-planned communities, shopping centers, business parks, etc. Once their plans are drafted and approved by the governmental agencies, the newly approved or "entitled" land is worth, on average, 3-5 times more than it was when purchased as raw, undeveloped land. (And this is before any structures or other improvements have been installed on the property!)

IMPORTANT NOTE: True raw land developers are not builders. They acquire raw, undeveloped land, get it approved to build on and then sell it to builders at a 300-500% MARK-UP, on average! This is why raw land development is the most profitable form of real estate.

During economic downturns like we are experiencing today, RAW LAND OWNERS are usually much more motivated to sell than in stronger economies. And, because professional raw land developers are typically far more knowledgeable about future community growth plans, they can often obtain desirable undeveloped land at bargain prices.

Because real estate is "cyclical" in nature, the timing for raw land development today is about as close to perfect as can be.

It usually takes 2 or more years to obtain all the required governmental approvals and complete a medium-large raw land development project.

So, assuming a raw land development project started today and if history repeats itself, the real estate cycle will very likely have turned back up by the time the project has been completed.Predictions are that we will begin to pull out of the down-cycle nationally by 2010. So, the timing today is extremely favorable and poses an opportunity for raw land developers and savvy investors to benefit from extraordinary property appreciation (which isn't normally factored into a land developer's calculations).

Raw land development expansion is an absolute necessity - not an option. We simply will require more land development in 10 Major U.S. Markets to support the U.S. population growth projections of >70 million new people over the next 25 years!

"Today, we are on the ground floor of an unprecedented raw land development expansion taking place in 10 Major U.S. Markets. It is the "perfect investment storm" for informed investors: when all the elements come together for an extraordinary event."

Finally, it's important for you to understand what sets raw land development investments apart from other high yield investments.

Here are the reasons why raw land development investments are cornerstone investments for many of the world's wealthiest investors and why every accredited investor needs to consider including these high yield safe investments in their retirement portfolios:

1) On average, a professionally managed raw land development project will increase the value of raw, undeveloped land by 3-5 TIMES what was originally paid for the property. In other words: an average 300-500% Gross Return On Investment for the raw land developer! (Before associated costs.)

2) Raw Land Development Investments are typically secured by the value of the land that is being developed. Also, investors are usually placed in 1st position for project assets and revenue for additional investor security. This means, in the event of an unforeseen catastrophe (heaven forbid), the land can be sold, allowing investors to recoup all or part of their investments in the project. Now compare that with stocks, bonds and most other investments where there is virtually no security on invested funds.

3) Raw land is virtually recession-proof because it really doesn't appreciate or depreciate much in it's undeveloped form, regardless of the economy (until the development process is completed.)


Article source: Here

Small Investment Opportunities

Small Investment Opportunities Include a Wide Variety of Investments
 While most investors focus on large investment opportunities in the stock market and bonds, it is wise to also consider small investment opportunities that can be made in a variety of ways to make the most of investment capital and diversify an investment portfolio.  Small investment opportunities include a wide variety of investment opportunities that require a few hundred to a few thousand dollars of investment capital.

Small investment opportunities can include small investments in start up businesses, new business franchises, or small businesses looking to expand.  These can include small business ventures started by an investor on their own.  Small investment opportunities can also include investing small amounts of money in penny stocks and small cap stocks, or even very small purchases of mid to large cap stocks.

Specific Small Investment Opportunities

Thousands of entrepreneurs are constantly looking for small investors to provide them capital they need to start or expand a small business.  There are many websites and entrepreneurial business organizations that connect entrepreneurs with investors looking to for small investment opportunities.

While certainly not without risk, investing in small businesses that are hungry for capital is a good way to diversify an investment portfolio into small investment opportunities.  To protect an investor’s investment capital when investing in small investment opportunities it is a good idea to research the small business and the people requesting the loan thoroughly prior to investing.  It is also a good idea to keep the small business investments relatively small, by limiting each investment from several hundred to several thousand dollars.  Since many small businesses fail in the long run, loans to small businesses should be made on a very short term basis; either for just a few months to help the small businesses get started or for no longer than a couple years to help the small businesses grow in the short term.  To compensate for the risk associated with lending to newly formed small businesses, and because normal lending channels might not be available to those seeking a loan, interest rates should be set above the current commercial lending rates.

Small investment opportunities can also include a number of business ventures started by an investor looking to diversify their investment capital.  Many small business ventures that only require a few thousands dollars to get started can also be done as a side business that does not interfere with an investor’s regular job.  These small business ventures include, but are not limited to:  setting up and stocking vending machines; selling products over the Internet; selling products at flea markets and local fairs; selling products in one’s home via product parties; off-hours consulting concerning a service one can provide such as computer training, music lessons, or organizing people’s belongings; lawn care and other house maintenance services; and home cleaning services.

One of the often overlooked small investment opportunities is the investment opportunity afforded by stocks.  Just because an investor does not have tens of thousands of dollars to invest in the stock market, does not mean that they cannot or should not invest in stocks, from penny stocks to stocks selling for hundreds of dollars per share.  With the low commissions offered by online brokers, even one share of a stock in a fast growing company can be purchased without paying excessive commissions, and could be an excellent small investment.  The payoff from such small investments can be much more substantial than investing small amounts of money in a low yielding savings account or  Certificate of Deposit (CD).  For example, an investor that has $800 to invest, could by two shares of Apple Computer, Inc. (AAPL) for approximately $800.  With the high growth rate and projected price for AAPL shares in coming years, such a small investment could result in significant gains over the next few years; much larger gains than are possible by investing in savings accounts or CDs.  Of course, investing small amounts of money in the stock market carries the risk of loss of capital, so any such investments should be done carefully.

Those who wish to pursue small investment opportunities are encouraged to learn as much as possible about the many small investment opportunities and the various risks and rewards associated with small investment opportunities.

Source: Here

good ways to invest money

Some of the Best Ways To Invest Money
 This article from Roy compares investing your money in the bank vs investing in the stock market.

Best Ways To Invest Money.

Investments and Savings are an integral part of financial lives today. There have been cases when even the richest person had died a pauper. Here are some ways which are regarded as the best for investments and money management.

‘Anybody can earn money, it’s the savings and investments that count’, is an adage that has become more fitting in the modern world. In today’s fast volatile world, investments have become a catchword in the financial world. Once the necessary expenses are taken care of, one has to decide which is the best way and place for them to invest their hard earned money.

One should make investments in a safe and sane manner. Before deciding to invest money, one should set aside their daily and monthly expenditure. One should also set aside the necessary amount to pay for any bills at the end of the month. Only a percentage of the monthly income should go in investments. Simply put, the amount put out for long or short term investments should not affect your daily lifestyle or liquidity.

A safe, cut and dry method of saving money is the bank. Banks offer you a set interest for the amount of money you deposit with them per month. The interest rate can be anything from 2 percent to 2.5 percent. Bank accounts are known to be the safest and most flexible, if not the best way to invest money.

Another type of investments that banks offer are bonds. Some private institutions like companies also offer bonds. There is little difference between bonds and certificate of deposits. A bond also pays out around seven percent as interest for the period of four years. Bonds should be invested in only when there is no immediate need of the money for a set period of time.

Other than bank accounts, banks also offer ‘Certificate of Deposits’. Under this scheme, the banks offer a set interest for the amount of money you deposit with them for a set amount of time. The timespan varies from case to case, but the general span is six months to two years.

The banks offer six to seven percent compounded interest on your deposits. ‘Certificate of Deposits’ are a time honored and time tested way of investing money. It is also one of the safest ways of investing money. Sometimes banks offer a higher percentage like eight to nine percent.

Such accounts, certificate of deposits and bonds are normal and safe ways of investing money. Though the returns on such returns are less, they are preferred more because depending on the bank or company you deal with, the returns are guaranteed and also depended upon.

Another way of investing money is the stock market. One can buy stocks in a company as an investment in the company. Stocks are shares in companies which can be bought by individuals or other companies. The stock market has always given robust returns of investments. For example, a person can buy stocks in a company for $5 and the next day, the cost of the shares could be as high as $8 per share. This is a perfect example of ‘making a killing at the share market’. The stock market returns as much as ten to twelve percent annually.

Though there have been many stock market crashes throughout the world, the stock market has always come back with a vengeance. Therefore, in hindsight, the best way of going with money to the stock market is by investing a small amount and keeping it in the market for a while.

However, one has to be very careful while investing in the share market. There is no other institution concerning finance that is as volatile as the stock market. While the above example quotes a rise of $ 3 in a day, chances are that the share prices may fall to a minuscule $1.

Therefore, it is suggested that one should make a proper study of the company one is investing in and also the share market before investing anything in the share market.

By Roy D’Silva
Published: 4/1/2007

Source: Here

micro investing

Buddy Can You Spare A Dime? The Rise of Micro-Investing
 Micro-Investing is providing those of us without the funds to become Venture Capitalists or Angel investors the opportunity to experience the thrill of investing without the risks. The model is somewhat similar to that employed by charities for years. A small amount multiplied many times equals a much larger amount. So instead of seeking thousands of dollars, asking for only a few, but asking thousands of people can equal the same amount.

Micro-Investing: What’s In It For You?

While the rewards of micro-investing are never going to match that of being a VC or an Angel, the amount invested and the risk associated with that amount is much lower as well. What you mainly get from micro-investing is the sense of helping someone get to a goal and a thrill of having backed the right horse.

Sites like KickStarter, Appbackr and newly launched Apptopia provide platforms for would be investors to find ideas that they like and make small investments in them. Kickstarter focuses more on arts based projects, Appbackr and Apptopia are focused on providing funds for mobile app development and the sale of the rights to apps respectively.

Micro-Investing:What’s In It For Them?

In a word, money. Depending on which platform you are using what they have to provide you, the investor with, varies greatly. Kickstarter projects might involve a product, a picture, a song or something similar, but it might just be a thank you card – depending on your level of investment. Appbackr investors get a small revenue share based on the sale of apps and the amount of their investment. Apptopia is a wholesale clearing house for the rights to an app – you are basically taking over the ownership of that app, code, IP the whole package.

For “starving artists” Kickstarter can mean the launch of a project that would otherwise wither in the wasteland of “good ideas”. Appbackr means that app developers can realize some money early on so that they can continue development and marketing of their app and go on to realize a full revenue stream.

Micro-Investing: My Experience

I’ve been playing with these platforms for about 9 months now and have invested in several projects.
One of the early successes was Cliff Roth‘s “Google Plus Speedpaint Hangout Project” – Cliff was looking to raise $2000. I noticed this project just before it’s deadline, he was $33 short of his goal. If a goal isn’t met then none of the investors are required to part with their money, also the project goes unfunded – in other words there is no “part funding” it is all or nothing. I chipped in the $33 and his project was funded. For that investment I was added to a Special Google Plus Circle and invited to Backers-Only Speedpaint Hangout Sessions, in addition I will also receive a pencil drawing of myself signed by Cliff. I felt that was a very fair exchange.

Another huge success was Creatures. This  is a card game and I actually invested in this to get the game as a gift for the holidays. I’ve had a lot of fun playing the game. But the real story here is that they were seeking $2,500 they actually raised over $56,000 in funding. People like me invested anywhere between $1 and $750 to receive various rewards from the creators of Creatures. This game is now available on Amazon.

My latest investment appealed to the geek in me. Twine is a device that allows you to interact with other devices and platforms like Text, Email, Web etc based on certain conditions. The interesting part about it is that it requires no coding. The interactions are all controlled by a very simple web interface. Again this project really appealed to the Kickstarter community. The Twine project was seeking $35,000 in funding, they raised over $500,000.

I have also backed a couple of apps on Appbackr but to date those have not made it into production and therefore I have not actually been charged any money. I’m hopeful that I will pick a winner soon.

If you haven’t tried micro-investing yet I definitely recommend it. Don’t expect to retire on the returns but you will have a lot of fun being part of the micro-investing community.

Source: Here

investing small amounts of money

Best Ways To Invest Small Amounts of Money
by Silicon Valley 

Investing simply means putting your money to good use with the expectation that you’ll receive a return or reward for doing so. 

A lot of us don’t have much money to spare. Sometimes you may find yourself with an extra $100; maybe someone finally paid you back for a long-forgotten debt (it’s happened to me!) or your mom sent you over a cash gift for your birthday. Or chances are, it’s just an extra $100 rattling around in your bank account that could find better use somewhere else.

Got $100? Best Ways To Invest Small Amounts of Money

1. Set up an automatic investment program.
I started an automatic investment program at a discount broker around a couple of decades ago. If my memory serves me right, I committed to placing $50 a month in a few mutual funds that represented diversified asset classes. I figured that I could afford to spare at least $50 a month on building a portfolio, and I found the process of choosing funds, deciding my allocation and finally starting an investment program pretty fulfilling.

While I’m not totally sure how much I’ve put into my investments through the years, I do know that my net worth has grown over a hundred times since I started investing. A lot of this I’d attribute to just “automated investing and saving”. This is something you can definitely do yourself by contacting online brokers, mutual fund companies and banks, and then setting up such programs at these institutions.

2. Invest in yourself.
Here’s one more way I’d gladly spend $100: on myself. Of course, our opinions of “how to spend on oneself” can all vary greatly. You may think of investing in yourself as spending to improve your health, your looks or your well being, which are all quite important to maintain your happiness and health. But what I mean here is that I would use $100 to invest in my “money generating” potential. For instance, investing in one’s education or in trying to improve your finances through personal finance classes or seminars would be money well spent.

3. Invest in a small business.
While I started an online business pretty much by accident, I realize now that if I had actually planned to become an entrepreneur, I would have looked into which businesses had the smallest outlay while promising to yield some reasonable returns down the road. Interestingly, there are still great ideas out there that you can pursue for a mere $100. Here’s a tip: online business ideas are notoriously cheap to start.

For instance, you can try to make money blogging. The stories of many bloggers (including my own) are testaments to how this can be done. I actually spent $0 when I first started blogging. It’s been several years now and my hobby has evolved into an online business: I got a few domains, hunted for the best web host and invested in a web design. The rest is sweat equity. The good news is that it took me 1.5 years to take the leap and quit my day job, and I’ve been blogging full time now for another 1.5 years. That’s 3 years as an accidental online entrepreneur and it’s been a fun and rewarding ride.

In addition, this change also spurred a lifestyle change for me which improved my health tremendously. All these results for less than $100!

4. Pay down your bad debt.
If you are carrying any amount of bad debt — whether it be credit card debt or other installment loans, you should funnel any extra money you have towards these obligations. Paying down debt which charges you X% in interest is like “earning” X% interest on that money you apply to the debt. If you carry a credit card balance, tossing $100 at it is always a fantastic idea.

These are some of my favorite $100 investment ideas. I’d love to find out how you’d spend, use or invest $100. If you’ve got some great ideas on where you’d invest small amounts of money, please feel free to share!

Source: Here

How to invest money wisely

Expert tips: How to invest money wisely

 With a mixture of capital protected plans and actively managed funds, Expatica financial expert Craig Welsh shows how an investment portfolio can be built for long-term capital growth.

Thomas and Karen are a married couple who have both been working internationally for 15 years. The 40-somethings, who are currently living and working in the Netherlands, would like to invest some of their savings but are not quite sure what to do.

They have a sum of EUR 100,000 in their savings account and do not need this money in the short-term. Interest rates are very low and it doesn't look likely that they will rise in the near future. They would like this capital to work harder for them and, as they both harbour hopes of retiring to France, they want to invest for the longer-term.

Thinking ahead

First, we would advise them to be clear about how much they can set aside for investment. They decide to keep EUR 20,000 on deposit and this can serve as their "emergency fund". EUR 80,000 can therefore be invested.

Second, they need to be clear about their risk profile. Understanding the relationship between risk and reward is fundamental to making sound investment decisions.

In order for capital to produce a return that is potentially higher than cash over the medium to long-term, investors need to accept that the value of their capital may fluctuate and can be volatile. The eventual "portfolio" should therefore match the investor's risk profile, usually measured from "cautious" at the lower end of the scale, "balanced" and then "adventurous" at the higher end.

If you are at all unclear about this, then you should seek help from a licensed adviser.

Third, they should consider how best to access the wide range of investments available to them. There is a vast array of asset types they can use; collective investment funds (mutual funds/unit trusts/OEICs/ETFs), direct stocks and shares, fixed-interest bonds (corporate or government bonds), property funds, commodities.

These can be accessed either directly or through a stockbroker. The problem is that this can be difficult to arrange, especially when you are living abroad and, unless you are an experienced investor (and very good at administration!), it can all prove a bit of a headache.

Portfolio bond

In many cases, using a "portfolio bond" can be a great solution. This is simply an administrative "wrapper", and something which many investors use to hold a variety of assets in one account. From these "wrappers", an investor can normally access any authorised and listed asset, for example any listed mutual fund / unit trust, ETF, tracker, company shares, property funds, etc. They are usually administered by international insurance companies and offer online access to view your "account" at any time.

Other advantages of portfolio wrappers include the low cost of administration (normally you can access assets at no initial charge) and tax-efficiency. Tax implications are of course dependent upon where you are a tax resident and we would stress that professional advice should always be sought in relation to taxation issues.

Considering that Thomas and Karen are planning to move to France, we advise that they use a Portfolio Bond with "assurance vie" status (many investments are not). This means they can benefit enormously from beneficial tax treatment (little or no tax on the growth) when they actually come to use the money in France.

Regulation is also important - in most cases an EU-based provider is most suitable. For these reasons, choosing the correct administrative "wrapper" is very important.

What assets to invest in
So, once they have carefully selected the most efficient platform for their capital, what assets do they actually invest in? Diversification is the golden rule here. Make sure that you do not end up with all eggs in one basket! This all depends on your risk profile, however we would tend to recommend exposure to each of the main asset classes.

Capital Protected Plan
Having decided to use a Portfolio Bond, Thomas and Karen decide to split the money between a 100% capital protected plan and some actively managed funds.

Using special terms negotiated by The Spectrum IFA Group, one plan offers a guaranteed return of +7.12% after one year on HALF of the invested capital. The other half is returned after 5 years with a return linked to the relevant market index, and a minimum return of +8.15%.

Liquidity is also an important issue, so we recommend that the remainder of the investment (about 70%) is in daily tradable, liquid funds (i.e. not tied-up), and is invested in a mixture of the following types of funds:

Multi-asset funds
Multi-asset funds are popular with investors as they are managed by experienced asset managers who, through active daily management, can offer access to all asset classes within a single fund. Their job is to capture capital growth while also protecting investors when markets suffer a severe downturn. Some fund managers have a great track record of doing this, for example Carmignac, HSBC and Jupiter.

Equities (shares) 
Many blue-chip companies pay dividends of between 4-5%, which is higher than current interest rates and can be re-invested for capital growth. Shares should be globally diversified, with exposure to the emerging markets (Asia, Latin America and beyond) as well as developed markets (US, Eurozone).

Fixed-interest bonds
This includes government bonds and corporate bonds. Again, emerging market debt funds (with exposure to local currencies) should also be considered.

Commodities
This can be assets such as gold and other precious metals, but you can also have access to other ‘soft' commodities such as wheat and livestock.

Property 
Collective property funds or property-related shares can be placed within the Bond.

Reviewing your portfolio on a regular basis

It is important that you regularly review the portfolio. One of the reasons why people do not get the most from their finances is the lack of regular attention paid to their arrangements. Consider using a regulated, independent adviser who should offer regular reviews as part of their ongoing service.

About author:
Craig Welsh runs the Amsterdam branch of the Spectrum IFA Group, a licensed independent financial planning firm with offices in the Netherlands, France, Spain, Luxembourg, Switzerland and Portugal. by contacting him at Expatica Ask the Expert section, email him at  craig.welsh@spectrum-ifa.com or visit the website www.spectrum-ifa.com.

Source: Here

best low risk investments

Risk-free investing
 Low-risk options 

National savings and gilts
One of the lowest risk investment options is the National Savings and Investments (NS&I) tax-free saving certificates. Particularly index-linked savings certificates, which guarantee to outstrip inflation.

A number of issues are offered each year, and you can invest up to £15,000 in each one.

If interest was, say, at 1.35% plus inflation, with RPI at 3.0% it would give a rate of 4.35% equivalent to 5.45% gross for a basic-rate, 7.30% for higher-rate, taxpayers.

Alongside these are British government stocks or gilts, which can be bought through a stockbroker.

These usually pay interest twice a year, plus the stock's nominal value when it reaches its redemption date, which may be ten or more years later. They can be sold before this for a less certain return.

Cash Isas

A good way of boosting your savings is to hold them in a cash Isa. The interest from these accounts is tax-free.

You can pay in up to £5,640 in the 2012-13 tax year, and top up your Isa account annually. Most savers can benefit by using their annual Isa allowance before putting any remaining funds into ordinary taxed accounts. But remember that if you want to move your Isa to a higher interest product, apply to transfer it rather than taking out the money and reinvesting it yourself.

This is because if you withdraw your money and then reinvest it during the same tax year, you'll be using up all or part of your tax free allowance for that tax year.

Savings accounts
You may use a current account for everyday spending, but it makes sense to move any surplus funds into a savings account.

In choosing one, you need to look carefully at its features as well as the interest rate it pays.

Instant or easy-access accounts suit those who may need to withdraw money at short notice. They are suitable accounts for rainy day funds but don't offer much growth above inflation.

For example, if you invested £10,000, the gross interest you would get at 6.4% is £640. Tax at 20% on this is £128, which leaves £512 net. For higher-rate taxpayers the net rate is 3.84%, which means their money lags 0.06% behind inflation.

Higher rates of interest are often offered to savers when they open a new account. These bonus rates commonly last for 6-12 months, reverting to a lower rate thereafter, so it is worth making regular checks to confirm the rate you will receive.

Some savings accounts offer higher rates of interest to those who can give 30, 60 or even 90-days notice before making withdrawals and often the best interest rates can be from accounts accessed online.

Others limit the number of withdrawals you can make to three or four a year – deducting interest if you need to make more. Another common feature is tiered interest rates, where those who can afford to deposit a large sum are paid a higher rate.

Regular deposits can also earn you higher rates with some accounts. Accounts of this kind do not normally allow withdrawals during the year though and are often capped in terms of the total amount you can save.

Higher rates still can be earned by combining your savings and current account, or saving with your mortgage provider.

Bonds
Bonds could provide another safer option for those looking to invest.

Guaranteed income or growth bonds are sold by insurance companies and guarantee to repay your original investment, plus interest, provided you hold them for the full term – typically up to five years. As with any fixed-rate product, you may lose out if the base rate rises.

Guaranteed equity bonds offer a less certain return and are only risk-free in that you should get back your original investment, but interest paid is linked to stock-market performance. There is a risk of a poor return if equities fall over the period you hold the bond.

NS&I also pays premium bond prizes tax-free. These are not the same as guaranteed interest, as you may not win, but your original investment is never at risk, except from inflation if you don't win anything.

Cash under the mattress
Finally, worried savers may be tempted to put their cash under the mattress. But surprisingly, this is a fairly risky strategy.

As it is not earning interest, your capital will be seriously eroded by inflation, even if inflation is currently low. And you won't be able to claim on your house insurance if your cash is stolen or goes up in smoke.

Source: Here