saving accounts vs investment

[robbin]

what is best, deposit money in saving accounts in bank or invest in shares ?

[Petunia 100]

It depends. Money you expect to need within a few years should be in cash. Only long-term money should be invested in stocks.

[photo]

Do you mean shares of stock?

The answer depends on when you need the money. If you think you'll need it within the next 5 years, then a savings account is probably where you should put it.

If you're looking for a long-term investment (over 5 years) and have cash elsewhere, then the stock market is fine.

Keep in mind that although the interest on a savings account is extremely low, your money is safe if the bank is FDIC-insured or NCUA-insured for a credit union.

With the stock market, your money could go way up -- or it could go way down; therefore, it's much more of a gamble. But historically, long-term investing in the stock market has beat savings accounts.

[MichaelLee-MJLCM]

Appreciation, Security and Inflation

As the others have said, your time horizon is a very important factor. Short-term should be in secure investments such as the money market, cd's, and short term interest bearing securities. For a long-term horizon there are many options to maximize capital appreciation. Historically, the best investment to counter inflation and maximize appreciation has been the stock market. Without knowing anything about your goals I suggest a globally diversified ETF. However, I recommend you consult with a reputable financial advisor who will help determine your goals and create a plan going forward.

[Frugal]

I keep mine in a savings account. Too risky to play the stock market right now. I also have a checking account that pays a decent dividend, for today's rates. It actually has a much higher rate of return than my regular, boring old savings account.

[Gary Barzel]

There is no right answer here, it all depends on your circumstances. In the long run the stock market usually outperforms savings accounts. Unfortunately by its very nature this isn't guaranteed, and if you get it wrong, you could end up with less than you started with.

[Nightfly]

If you put your money into a savings account - consider an online account through Ally Bank or ING Direct. Often these two offer $50 (or whatever) incentive offers when you deposit money into a new online account with them, if you keep the money there for 90 days or so. Beyond that, you're not going to make money in a savings account - it's just a place to "store" money for the proverbial rainy day, like an emergency fund. If you already have a couple grand "stored" as an emergency fund, steer clear of buying individual shares until you know what you're doing. Invest in the stock market via no-load (that is: no or very low broker fee) mutual funds through reputable companies like Vanguard.

[efutures]

what is best, deposit money in saving accounts in bank or invest in shares ?

It really depends on what you know. Investing can be great if you know what you're doing but a money eater if you don't. You can always learn to trade with pretend money in the interim.

[jpg7n16]

Do you mean shares of stock?

Agreed.

Shares of what?


And why are you looking to invest? (growth, income, long term, short term, thrill, etc.)

[Michael01]

Share investment is risky but it will give gud returns also if strategically investment is made in them.

[chrisgayle]

There is always risks associated with any type of investment. For any investor prepared to take a risk on their capital, the share market looked a far better option. If you are well expertise in share markets, go with that, else better opt for savings account.