Savings rates are really low at the moment, you will be lucky enough to get 3% in the UK or the US. However in emerging countries like Bangladesh you can get 10 Percent interest rate savings account. Before you start to invest in an overseas 10 Percent interest rate savings accounts you need to understand the risks. You need to know if there are any compensation schemes and how secure your money will be and how quickly you can access it. If the bank has a good track record and has a proven history of paying 10 percent on its savings account then it might be worth taking the plunge and finding out how to apply. When investing in 10 Percent interest rate savings accounts be sure not to invest everything you have, try the bank out with a small amount and then gradually increase the amount you invest.
10 Percent Interest Rate Savings Account Strategy
Once you find a 10 percent interest rate savings account you need to specify an amount you are happy to invest. If you have £100,000 in savings you need to decide what percentage of the savings you are willing to risk for the higher interest rate, ideally you would want to start with about 10% and then gradually increase your holdings once you feel comfortable with the bank.
If you were earning 4% on the £100,000 then you would get a return of £4000; however if you invested £90,000 in the UK earning 4% and £10,000 earning 10% then you would have a return of £4600! You would be earning an extra £600. If you felt completely confident with the bank and eventually transferred all the money to the 10 percent interest rate savings account then you would be returning £10000 as opposed to £4000!
10 Percent Interest Rate Savings Account Drip Feed
If you want to gradually build up your savings in the 10 Percent savings account without risking your capital then you can drip feed the interest you earn in your normal savings account and then drip feed the interest to the 10 Percent savings account. If in year 1 you have £100,000 returning 4% then you will make £4000 which you could transfer to the 10 Percent savings account in year 2 and return £400. If you continue recursively using this method then you will not be risking your capital at all and will be compounding your interest at two levels!
10 Percent Interest Rate Savings Account: Alternatives
If you are not willing to take the risk of investing abroad in an emerging countries bank account then you do have a lot of other options. If you have savings then what you have to do is find the highest paying savings account. If you have £100,000 then you can typically find accounts paying 3% (2012) this means you will be earning £3000 per year, if you can find a regular savings account that pays 8% (First Direct 2012) then you can really maximise your interest. Bearing in mind that you can only pay in £250 per month if you are able to open 4 accounts in your family members name then you can deposit £1000 per month earning 8% APR, this strategy will really turbo charge your investment!
10 Percent Interest Rate Savings Account: More Alternatives
If the thought of researching the savings markets and drip feeding is something that you dont fancy then you should take a look at structured products, these investments give you exposure to the stock market. One good feature of Structured Products is that your capital is guaranteed up to a certain level. Most structured products lose money when the FTSE or DOW fall more than 50%, the likelihood of this happening is very low. If the FTSE or Dow rises above a pre determined point then you get explosive returns sometime even 12% per year! Its very important with structured products that you really understand the risk involved, always read the small print and if the deal looks too good to be true then it usually is.
There are literally hundreds of savings and investment accounts and products in the market. Always invest in line with how much risk you are willing to take. If you are risk averse then you should consider savings accounts, if you are a more adventurous investor then you can try the 10 percent interest rate savings account. If you want a high risk strategy then try products which have exposure to the stock market (Structured Products).