Dear readers, in these current times of high interest rates, fixed deposits are well-loved by Singaporeans. This is especially so as fixed deposits offer a way for Singaporeans to grow their monies in a risk-free manner and help to offset the effects of inflation a little.
These days, fixed deposit interest rates average to around 3% per annum and there are also some options savers can tap on to grow their monies safely too, like money market funds which also provide some decent interest rates.
If fixed deposits are so good, why am I labelling them as a trap?
Well, fixed deposits have some draws for example, a lock on one’s liquidity for a period of time in exchange for capital growth.
But the real trap of fixed deposits is this: fixed deposit provide a way for savers and investors to grow their pot of monies but saves and investors may be so fixated on ways to grow their monies that they miss the bigger picture altogether.
And that bigger picture is to increase the pot that they bring to for growing their savings via fixed deposit. And increasing this pot is none other than the time-tested method of saving diligently.
A key part of saving diligently is to lead a simple life and have less unwanted and unnecessary material stuff in life.
Live simple and Live Healthy, Thanks much for reading this post!
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