Should I buy bonds or save? ? – Bonds and savings are two investment channels that can bring profits to many people. However, many investors are still hesitant about whether buying bonds or saving money in a bank will be more effective. Under this post Market hot news will compare these two forms of investment and point out what are the risks when buying bank bonds?
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Should I buy bonds or save money in a bank?
It can be said that these are all investment channels that bring profits to investors. However, there are advantages and disadvantages between these two methods. Therefore, before choosing to invest in either, you should consider and research both specifically. Below is a comparison table of pros and cons so you can judge whether to buy bonds or save.
|Content||Bank savings||Invest in bonds|
|Defect||Although there is a fixed interest rate, it is not high. If you withdraw money before the deposit term, the profit will be very low, almost less than 1%.||You will encounter risks such as interest rates, inflation, liquidity.|
According to the comparison table above, you can certainly see which investment channel will be more beneficial to you. In general, if you have the knowledge and ability to analyze risk, investing in bonds is a good choice. So should you buy bank bonds? Let’s find out in the next part!
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Should buy bank bonds at this time?
If you have judged between buying bonds or saving, you choose bonds in general and bank bonds in particular. Are you still hesitating whether to invest in this channel? Basically, when investing in bonds with higher interest rates, some other advantages can be mentioned such as:
- The bank is a reputable issuer as it is a government-supervised institution.
- Investors who invest in bonds will receive a fixed interest rate as long as the bank is still in operation.
- In the event that the bank goes bankrupt, the bank will give priority to paying investors to buy bonds first and then shareholders.
- For the most part, the issue price of bank bonds is not too high, so it will be suitable for many investors who do not have a large amount of capital.
- At the same time, the associated risks are also low.
However, the return you get from buying bonds will not be as high as corporate bonds and stocks. But of course it will be much higher if you put it in savings.
>> See more: Infographic steps of the corporate bond market in the first 6 months of the year
Which bank bond interest rate is the highest today?
This is one of the banks with the highest bond yields. The bank has many preferential investment forms for customers. However, Vietcombank’s bond issuance time is quite long. The first time is in 2 years, the 2nd time in 10 years has ended.
- First time: Bonds issued in 2002 with an interest rate of 8.5% per annum.
- Second installment: Bond interest rate is the average interest rate of personal savings in 12 months + 1%/year.
Bank bonds Vietinbank
This is also one of the bonds with attractive interest rates. With maturities over 5 years and bonds are adjusted periodically, specifically as follows:
- For corporate investors, it is 6.3%/year.
- As for individual investors, it is 4.5% – 5.2% with a term of 3 to 6 months.
The bond price of Viettin bank will depend on each issuance, so to invest you need to monitor the bank’s information to grasp the best investment opportunities.
>> See more: What are corporate bonds? risk or opportunity for investors
Bonds of Agribank
As a bank with 100% state capital, Agribank’s bonds are very safe and have little risk. Bonds of this bank have a high interest rate and depend on the interest rate on savings banks.
Specifically, Agribank has a bond interest rate of 6.9%, much higher than bank savings.
Risks when buying bank bonds you may encounter
Any financial investment channel will have a certain risk. And so is investment in bank bonds, here are 2 risks that you may encounter when investing in bank bonds.
- Bankruptcy risk: Although the possibility is not great, but now there are countless banks competing with each other. Therefore, inefficient banks will be eliminated from the market, so investors should also be careful about this potential risk.
- Low interest rates: The yield of the bond will be based on the interest rate on that bank’s savings. When the socio-economic situation is difficult, bank savings interest rates will also decrease, which means bond yields will also decrease. Therefore, you should consider bank interest rates before investing in bonds.
>> See more: “Construction Truong Gia – Earning very high profits but high safety ability
Through this article, you must have chosen whether to buy bonds or save in a bank, right? Every investment channel has its own advantages, if possible, you should divide the investment capital and invest a little each. Because we shouldn’t “put all our eggs in one basket”, right? Wish investors find direction and invest successfully!
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