Alternatives to Cash
The importance of having cash in bank accounts to meet regular living expenses is obvious. However, if you do not plan appropriately, you could end up with too much cash in your bank account and sacrifice returns as a result. In this post we will look at some alternatives to cash that provide returns without sacrificing liquidity.
- Money Market Mutual Fund. These are funds which invest in short-term government and corporate debt instruments. They return significantly more than a savings account while also allowing you to withdraw your money with short notice.
- 91-day Treasury Bills. This is a short-term government debt which allows you to earn interest on your money with minimum risk. You will not have access to your money during the period which it is invested so you should consider that when buying treasury bills.
- Fixed Deposit. This is similar to treasury bills except you’re lending to the financial institution not the government. Fixed Deposits usually come in the form of 91-day, 182-day and 364-day terms and the interest rate is usually lower than that of the treasury bills because it’s usually easier to make withdrawals. Some financial institutions allow you to use your money in fixed deposits as collateral for loans. This allows you to have access to cash without withdrawing your investment.
If you want to try some investment products that will give you the best balance between returns and accessibility, you should talk to IC today. With a call to +233 (0) 308250051, you will be guided by a professional on the best options available to you.
Thank you for reading.