Saving money is necessary to have a buffer in unforeseen events such as an expensive dentist visit, if something in the home or car breaks down or if you become unemployed for a period. Savings can also be used to give a golden edge to life. You do not have to worry about the economy, you have more freedom to choose a job you enjoy even though it may not be extremely well paid. You can also go down in working hours to have more time and energy for yourself and any family.
Save money with returns
In today’s interest rate situation, it is difficult to get any further return in the form of interest on a savings account. In most major banks, the interest rate is below 1%, even if you commit the money for a longer period. In order to get a higher return on their money, you need to invest in other ways, for example. on the stock exchange in funds or shares. You can also invest in real estate, but this market has been unstable in recent years, both in terms of own villas and apartments as well as the construction companies’ housing projects. The stock market is always risky, although you can read on and reduce the risk somewhat.
Save money in bank account
Keeping your money safe is almost the only way to save them in a bank account. However, the value of money decreases with inflation so it is important to try to find the best savings rate when choosing a savings account. There are several ways to get higher interest rates on savings accounts. to compare, to bind the money, to opt out of a deposit guarantee and to save on private loans.
Compare interest rates
Today, there are many banks and credit institutions to choose from and with the help of the network it is fast to compare different interest rates of different players. There are also comparison services to use for this purpose.
Tie the money
If the bank is allowed to borrow money even for a longer period, e.g. a number of months or years, you are usually rewarded with higher interest rates. Whether it is profitable or not depends on how interest rates generally develop. If you have committed to a high interest rate and the repo rate goes down then you have made a good deal, but if the interest rate goes up you can risk sitting with the money locked at a lower interest rate.
Alternative savings accounts and loan institutions
Most major banks and credit institutions have a deposit guarantee in the account, ie if the bank or credit institution goes bankrupt, you are guaranteed to still get your saved money back by guaranteeing an amount of up to about SEK 900,000. Operators are allowed to offer savings accounts without a deposit guarantee. This means a greater risk for the saver and they are then rewarded with higher interest rates. If you choose a large, stable player or preferably several, the risk of bankruptcy is relatively small and you can get a higher interest rate with only a small risk increase. It is important to read on so that you know the player you save with and what risks you take.
Another variant of savings that gives a higher interest rate is so-called peer-to-peer lending, ie by lending money to private individuals through an intermediary. Here too, there is no deposit guarantee and you also risk that the private individuals you lend to cannot repay. However, this “savings form” is structured so that you not only lend to an individual but invest in a “basket” of loans to reduce the risk. Here, too, it is important to read on, but a higher savings rate than the traditional banks is possible.