Compared to the previous year, the inflation growth in Ukraine has slightly slowed down. If last year as of June the percentage of inflation was about 0.6%, this year it is 0.1%. The growth in the consumer power of the population has slightly increased. Core inflation in Ukraine in July 2021 amounts to -0.1%, having a negative value. However, in annual terms, it remained at the level of 7.3%. The outlook for the rest of the year to come is 9.6%. Due to this phenomenon, many are thinking about how to save their cash savings. It is worth further considering the options, how not to multiply the available capital, but also not to lose the part of the budget only because of inflation. It is not as difficult to protect your savings as it might seem at first sight. Let’s analyze some of the most common ways.
Hryvnia bank deposit
Here we mean the classic interest-bearing deposit in the form of a deposit. The convenience of this method is characterized by its simplicity. All you have to do is to take the money to the bank and choose one of the formats offered that suits you personally:
– Term deposit. In this case, money is placed for a certain period, for example for six months or a year. In this case, you can choose whether you will receive interest every month, or you are willing to wait for the final amount at the end of the deposit period. However, there are nuances in the second case. After all, when you close the personal account you will not be able to withdraw the interest.
– A perpetual cash deposit means that you can withdraw your interest at any time. You can also close such an account at any time without losing your dividends. Despite the convenience of this kind of investment, the interest in it accrues somewhat lower compared to term deposits. This is due to the fact that the bank reinsures itself, because it does not know for sure when you want to take your money back.
Multicurrency deposits, where savings are kept in different currencies, e.g. euros, dollars, are popular. Such deposits allow banks’ clients to protect themselves not only from inflation, but also from fluctuations in the currency market. If you are well-versed in the financial market, you will also be able to profit from exchange rate fluctuations.
It is also worth noting that at such investments accruals, as a rule, are made for each currency separately. Such operations also have their disadvantages: low interest rates, which may vary depending on the selected bank. But if stability in different currencies is more important to you than the accumulation of interest, this is your option.
Savings in gold
What is meant here is not so much jewelry as bankable precious metal, which is often offered in bullion bars of different weights. For many people gold has not yet become the usual way to save their savings. However, if we talk about the long term, such operations can help you preserve the available capital. The biggest advantage of precious metals is their stability and protection. The value of bullion will be preserved even when the value of currency will change and stocks will turn into ordinary paper.
Investment life insurance
With investment life insurance, you can protect yourself or your loved ones from possible expenses in case something happens to you. It also protects your money from possible inflation. All you need to do is sign an agreement with an insurance company and let them manage your money. The insurance company itself can offer its clients two types of programmes: aggressive or conservative. In the first case, the money will be invested in more aggressive shares with a high rate of return, in the second case – in stable, but with a lower interest rate.
Investments in securities and shares
The main law applies here: the higher the projected return, the higher the risk. If you have no experience in the stock market, it is better not to try to earn everything at once. Give preference to more stable companies, with which the risk of losing money is minimal.
One reliable way to keep your cash savings is to open a free online account, which is offered by WestStein service. The platform offers a WestStein prepaid card, as well as the possibility of opening a virtual card. This will allow you not to carry plastic with you. You can deposit and withdraw money at any time convenient for you, make purchases, including purchases in euros in various online stores around the world.
It’s easy, profitable and reliable to apply for a virtual card and order a prepaid MasterCard. And together with it you will experience all the benefits of a free online account.