Despite the periodic economic and financial crises that come to Russia or the entire world economy, most people still manage to put off their surplus income. A stable source of receiving money, for example, wages, helps a lot in this. At the same time, the accumulation of a certain amount raises another question. How to save savings, and even better to increase them? In this material we will analyze in what currency it is more profitable to store money. But first, let's talk about ways to save savings.
Ways to Save Savings
It should be noted that there are many options for maintaining and increasing accumulated cash. But the main ones are few. The choice of how to save your money depends largely on the purpose of the savings. In addition, the fact that you simply want to protect your savings (from inflation, devaluation, etc.) or whether it is profitable to invest and increase them is of great importance. Among the most popular tools for preserving and increasing money are deposits in banks, real estate, investing in business, and buying antiques. In what currency it is better to store money, you will find out by reading the material to the end.
In addition, when choosing a method of saving your own savings, you need to pay attention and analyze the terms of storage that I can offer these or those tools. The risks should also be considered. As you know, the risks increase with increasing profitability. In other words, the higher the profit derived from own investments, the higher the risks of losing them. In addition, external factors, as well as the global economic situation, play a significant role in the preservation of accumulations. But nevertheless, today the currency remains the most relevant and reliable way to maintain their own cash savings.
The choice of monetary units for saving
When choosing a currency for storing deferred funds, the purpose of these savings should be taken into account. If the owner of the excess amount of money does not plan to use the savings for the formation of the family budget or for an early major purchase (real estate, car), then they can be converted into gold. This precious metal has been used for centuries as a specific standard, it has permanent liquidity and is guaranteed not to lose its relevance for many years to come. But in what currency to store money?
When purchasing real estate or a car in the near future, it is better to save the savings in the currency in which the purchase will be made. Most often it is a national monetary unit. You can use popular and reliable foreign currencies when there is a need for long-term storage of funds. If you want to receive income from possession of the accumulated amount, you should choose a foreign currency, taking into account the situation in the world economy, as well as in those countries where these monetary units are issued. In what currency is it better to store money in Russia?
Storage of money in Russian rubles
For Russians, this issue is as relevant as for citizens of other states. What currency to store money in? Russia is one of the 15 leading countries in the world in terms of nominal GDP. Nevertheless, the Russian ruble as a tool for preserving savings is suitable primarily for those who receive income in this currency. In this case, there are no costs that accompany currency exchange operations. In addition, during the exchange of purchased currency back to Russian rubles, losses are also inevitable due to the difference in the purchase and sale rates of monetary units in banking institutions.
The stability of the domestic currency inspires some optimism, despite the stagnation or slight growth of the Russian economy in the past few years. Ruble liquidity is ensured by energy exports, and the relevance of oil and natural gas to the global economy in the coming decades is beyond doubt. And in what currency to store money in Kazakhstan? Citizens of states with close economic and industrial ties with the Russian Federation can be advised to use the same Russian ruble as one of the tools to preserve their savings.
It has one more advantage, namely high interest on deposits, which can be obtained at many banks. These rates compare favorably with those offered by financial institutions to their clients for deposits in foreign currency. It is especially cost-effective to use the Russian ruble for short-term storage or investment, since for a short period, as a rule, there are no significant economic events that can affect the profitability of ruble investments. In what currency to store money in Belarus?
The economy of this republic is also closely connected with the Russian one. When choosing a currency for saving savings, residents of Belarus should be aware of several denominations of their national currency. But one should not choose only the Russian ruble. Further we will consider other options.
Savings in US dollars
The American dollar is the main reserve currency in the world. In addition, this currency is the most common and popular. The US dollar is especially suitable for maintaining their savings for those who receive income in this particular currency. Despite the fact that many experts consider the American economy to be bloated and have signs of a soap bubble, the United States ranks first in the world in terms of nominal GDP and so far is not going to lose its position.
In addition, the dollar is supported by the most powerful American industry, the production of high-tech, and in some cases unique goods. It should be noted that it is more profitable to place American dollars on bank deposits, provided that in the near future there will be no need to carry out exchange operations. It is with long periods of time that the safety and profitability of dollar deposits will be the highest. In what currency do you store money other than the US dollar?
Euro savings
The euro is one of the youngest world currencies. At the same time, it has already managed to become a reserve and take its place in the gold and foreign exchange reserves of many countries. Despite the fact that the economic situation in some countries of the European Union leaves much to be desired, its economy is showing a small but steady growth. It is advisable to transfer your savings in euros subject to the implementation of short-term deposits or when you are planning a trip to one of the countries of the Eurozone.
Other types of savings in foreign currency
Other popular currencies besides the already mentioned Russian ruble, US dollar and Euro are the Swiss franc, British pound sterling and Chinese yuan. These monetary units are advantageous to use primarily to protect their savings. But in some cases, they can provide a good income. So in which currency is it best to store money?
For example, the Swiss franc. This currency has remained stable for decades. In addition, in recent years, many banking institutions offer their customers very attractive conditions for placing deposits in Swiss francs. So, the rate on deposits in this currency reaches 6% per year. Such indicators are much higher than those that show deposits in US dollars or euros.
The British pound is also a convenient and reliable tool for maintaining savings. Despite the recent events in the UK, which ended with the country's exit from the European Union, the pound is still one of the main reserve currencies in the world. In addition, it is traditionally stable and steady. Rates on deposits in this currency range from 0.5 to 4.5% per annum. What currency to store money in 2018?
Storage of savings in RMB
Another alternative to the most popular currencies is Chinese Yuan. The Chinese economy has grown at a tremendous pace in recent years, which has allowed the country to create huge gold and foreign exchange reserves. Even the US global financial and economic leader has a huge debt to China. And, despite the slowdown in the Chinese economy, international investment in the production of goods in China is growing.
In addition, there are optimistic forecasts regarding the trade balance. All these factors make it possible to classify the Chinese yuan as the most stable and reliable world currency. The yield on such deposits will be in the region of 2-3% per annum. Chinese Yuan is an excellent tool for long-term investment.
Finally
It is necessary to emphasize several more factors that were not affected in the main part of the article. Any, even the most reliable currency, is subject to certain risks. An eloquent example of this is the global economic crisis of 2008. That is why, answering for themselves the question in which currency it is profitable to store money, it is advisable to take the advice of many financial experts and analysts. They recommend diversifying their investments. In other words, it is advisable to save your own savings in several currencies at once. Thus, it is possible to ensure constant profitability of savings, as well as their safety in different time periods.