5 ways to use your savings

5 ways to use your savings

Have a large savings fund and want to put it to good use? We present 5 good ideas.

Most people labour through life without sufficient savings to fall back on. But others, like you, consciously save money with an eye on the future.

Now that you have a sizeable savings fund, you want to invest it in something worthwhile for yourself and your loved ones. Consider these 5 ideas to use your savings:

  1. Open a fixed deposit account. The best way to augment the size of your savings fund is to open a fixed deposit account. The fixed deposit offers capital appreciation on the fund over a certain tenure, at a certain pre-decided fixed deposit rate. The biggest advantage of this investment option is that the fixed deposit rate does not waver in conjunction with market fluctuations. So even if market rates drop or rise, the fixed deposit interest rates remain unchanged – this means that you can estimate how much the fixed deposit will accrue at maturity. Currently, leading housing finance agencies are offering fixed deposit interest rates ranging from 7.7% to 8.2%, based on the amount of deposit.
  2. Make a down payment on a new house. Since you have quite a bit of money saved up, it may be time to realise a long-standing dream – buying your own house. After years of saving and dreaming about moving into a house that you and your family love, you can finally make a down payment on a suitable property. A home loan can take care of the rest of the money that you need to complete the house purchase.
  3. Renovate your home. If you already live in a house of your own, it may be time to recast your house to make it as good as new. You can break into your savings this year and plan to make small restorations to the house – a paint job, new furniture for the living room, a gorgeous new dining table for the kitchen…you can make a list of renovations that the house needs, and tick off the ones that your savings fund can finance.
  4. Get a car for your spouse. The role of a spouse in a relationship and in running the home can never be underestimated. Whether your spouse is the breadwinner of the family or a stay-at-home parent, they do a lot of the heavy lifting that makes your house a home. You wish there was a way to express gratitude for your spouse – maybe a new car for them will do the trick? You can make a down payment on a new car using your savings, or make a part payment and take a car loan for the remainder.
  5. Buy your child a foreign trip. You can move heaven and Earth for a smile from your child. Your kid would love to go abroad for a foreign holiday – why not use your savings fund to make this dream come true? You and the family can have a fun filled holiday abroad, and your child will remember the trip for a lifetime!

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