Can bank deposits be used for long-term purposes?
Good afternoon, dear readers! I haven’t posted any blog posts for a long time. This is largely due to the fact that more than a week ago, I launched a free training course on bank deposits “First Interest in Three Days!” and in this regard, literally in a few days, a huge amount of work fell on me!
I was finally able to clear the debris in the mail and answer the questions of the course participants. Today, I would like to voice one of these sent questions and give a detailed answer to it! You probably already guessed what kind of question it will be, based on the title of the article, and you are absolutely right! It sounds exactly like this: Can you use bank deposits for your long-term goals, for example, teaching a child and how to do it correctly?
It seems to me that in order to answer this question, bank deposits must be evaluated from several sides. For example, when they already have money and when there is no money. So, if you go deeper and think logically, then the learning process is a long process (school – 10-11 years, any university – 5-6 years), therefore, it is also necessary to take into account the time during which money must work or accumulate. Therefore, there are two options: either we save money in order to teach the child later, or we invest / invest money now in order to teach the child with the income received.
1. To accumulate
I recommend opening a deposit at a higher interest rate with interest capitalization and regularly replenishing it (preferably monthly). So capital will be created and increased faster if you kept money, say, on a simple bank card! Accrued interest + your additional contributions will increase the amount of contributions at times!
2. To invest
We open a deposit with an increased interest rate and monthly interest . The amount received each time, in the form of interest, is credited to a bank card, with which it is easy to pay everywhere and withdraw the received money. You can do this once a year, for example, when the contract ends, it will be time to close the deposit and take your money. Everything that came over the top of the amount that was put into the bank can be used to pay for education, but not more.
3. To save and then invest
Just combine both options. You shouldn’t think too much about such things. You need to take and do. Everything can be changed in the process. Moscow was not built in a day. There is nothing perfect, or rather, it is not created the first time. You will have to go through a lot until you understand the whole process from the inside.
In general, I recommend using such schemes not only for education, but also for retirement, planning some large purchases! This is a versatile model that can be used at any time! By the way, this is much better than loans and various microloans, which I do not recommend using in such cases!