Escape the mini-rates: earn money with stocks

Times are still bad for savers. The key interest rate will probably rise again in the medium term. The interest on savings accounts and many money market accounts are so low that, because of the inflation rate, money is paid instead of receiving a positive real interest rate. In order to escape the mini-interest, there is only one way for the German savers: Instead of taking a safe cash investment, and to bet on stocks, ETFs, gold and Co.

Of course, the daily allowance has the advantage that it is hedged up to the amount of the deposit guarantee. This means that a saver gets his 100,000 euros back safely, if his daily allowance or his money-market accounts are no longer due to a bank failure. However, for equities and ETFs, price volatility may vary depending on the conservative or risky investment. Investing in gold also depends on the gold price development. However, anyone who wants to repay money for their private pension plans can not afford to spend their savings on several types of investment, ranging from secure to high-risk or very risky.

Divide the savings into several investment types

Divide the savings into several investment types

If you only use an investment type or saving form, you soon realize that this was a wrong idea. Either the investor suffers with a too risky investment a total loss, and then annoyed that he has not previously thought. Or he lives with mini-interest on the daily allowance or other savings contracts, and pays year after year, because the inflation rate is far from being covered by the interest rates. It is important to divide the savings into several investment types. This is what many investment experts recommend. How exactly the portfolio is divided is up to each saver. A part can be invested in stocks and ETFs. A part in physical gold and silver and possibly other precious metals. A part on a call money account as a reserve when someone needs to be fluent quickly. A part on a time deposit account. And maybe, depending on your preferences, even a bit more in Bitcoin and other digital currencies and more.

Pay attention to the conditions

ETFs are now the hit in the investment business. But as many ETFs as there are, there are a variety of different terms for this type of investment. If you want to invest a part of your savings in ETFs, you should first read well the investment conditions and the securities prospectus of the provider and the respective fund. For example, there are different risks and also different costs. An ETF may be fundamentally different from another fund. Only those who look closely, in the end knows, in what he invested his money. If you are unfamiliar with ETFs, you can look for a broker offering a free demo account for ETFs and Co. With such a demo account, different ETFs can be tested in peace without any loss, because real money has been invested in the funds.

Find the right deposit for equities 

In general, depot plays an important role in investing in ETFs as well as investing in equities. There are various criteria according to which such a securities deposit can be selected:

  • Costs for deposit management
  • Is the depository management free
  • What are the order costs?
  • Is there a fixed price for the order?
  • Costs the limits a bit
  • Are there discounts, eg for frequent traders
  • Is there a new customer bonus for the depot?
  • Are there order balances or trader balances as a new customer action for the vault?

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If the deposit management is free , this does not necessarily mean that the depot itself is cheap. It may be that the provider offers the management of the depot free of charge, but it strikes the order costs. It therefore offers a thorough depot comparison with all the criteria to find a really cheap deposit for stocks, ETFs and Co.

If you want to build on the investment success of others, you can do so. So with the social trading is possible to copy the successes of other investors, and to use as one’s own investment strategy.
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