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It doesnt matter where you save your money, as long as the money still stays with you, compound interest will work for you.
Here are some places you can consider to save your money.
1. In a Milo Tin under your bed. Not a bad place to safeguard your money as it will always be with you when you sleep. Somemore compound interest still works for you and your money inside the tin except the interest rate is 0%
2. In Savings account. Like the name implies, it is really a saving place for your money. Your money is with the bank which is even safer. The interest rate is horrible, 0.25% for Rm3000 and above. But still compound interest still works for you.
3. In Fixed deposit Account. The rate given is much higher than Savings account but still consider horrible. 12 mths interest rate only 2.5%, our nation inflation rate also around 5% pa. meaning we already making lost of 2.5% if we put money in FD. But we still can keep our money over here and hope the interest rate will go back up when the economy doing well.
4. In Bond funds. These funds give back a return of ranging 5~7% depending to the bond rating and the creditability of the bond issuer. Not a bad place to go into given the market condition at this moment plus the risk-to-return ratio is low.
5. In equity fund or share market. This is where you get high return ranging from 6~50% but the risk-to-return ration of cause will be much higher than those in bond fund. But if you remember rule #2, this is also a wise place to place your money.
In the end, it is still come to you to pick which ever channel that suits you and let compound interest works. Never forgot Rule #3.
I will be stopping here. Next i will sharing with you all which channel i picked for compound interest to work :)
Ciao
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