They say that life is full of surprises, some good and some bad. Whatever life throws at you, whether it’s a great opportunity or a difficult challenge, being prepared and able to take the best decisions always helps.
Building financial resilience
When it comes to money, it’s important to build up some savings. Having some money tucked away will give you peace of mind, should you loose your job or face an unexpected expense. It will also give you the freedom to take on opportunities, like a property investment, should they arise. Savings which are easily accessible give you the freedom to tackle life’s surprises with greater ease.
When savings are not enough
While saving money has many advantages, it’s generally not the best option when it comes to building long term wealth. The fact is that interest rates on savings and even longer duration term deposits are unlikely to outpace inflation by any significant degree. That means you should look to other investment opportunities if you are planning for your retirement or seeking financial independence. However, even if you are looking to build wealth, there is still a role for savings.
A hedge against volatility
Any investment strategy comes with risk. While the amount of risk can vary significantly depending on what strategy you opt for, there’s always the possibility that the value of your investment declines. That means you need to make sure that whatever happens does not result in a crisis with your finances. Falling financial markets could well be one of the surprises life throws at you. In such cases, savings can give you the power not just to survive but also, perhaps, take advantage of any opportunities that arise. Having the resources to invest during downturns is, after all, frequently the key to building significant long-term wealth.
Savings options
If you’re looking to build up your savings and give yourself a robust financial foundation to meet life’s surprises, there are number of options available. A first step is to find an instant access savings account which pays interest but allows you to use your money whenever you want or might need it. MeDirect’s MeMax account could be a good starting point, offering 2 per cent per annum, paid monthly. For better rates you could opt for a term deposit account which would, however, mean that your money is tied up for a fixed period. You can find out more about the interest rates currently available on term deposits from MeDirect here.
If you would like more information, you can also send an email on customerservice@medirect.com.mt or call us on +356 2557 4400.
The MeMax account is available in Euro and rate quoted is gross of tax, paid on a monthly basis and is compounded. Account holders can deposit up to €2,000 per month up to a maximum account balance of €50,000.
Term Deposit accounts can be opened with a minimum of €100 and deposit must be kept in the account for the duration of the term. Terms and Conditions apply and are available upon request.
MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority to undertake investment services under the Investment Services Act (Cap.370) and the business of banking in terms of the Banking Act (Cap. 371). The Bank is a participant in the Depositor Compensation Scheme established under the laws of Malta.
