The remuneration of the main savings accounts in the market, even if it has mechanically progressed in recent years, remains low. It is also inexorably eaten away by inflation, which annihilates the return. However, there are alternatives to investing cash in savings accounts. For savers exploring these alternatives, this guide details the advantages and unique characteristics of ETFs, shares of companies distributing large dividends, and high-rate savings plans.
Alternative 1: investing in ETFs
ETFs (for Exchange Traded Funds), commonly called trackers, are so-called indexing products which allow the purchaser to gain exposure, in a single transaction, to an index. Thus, by purchasing shares of an ETF, it is possible to replicate, as closely as possible, the CAC 40, the S&P500, or any other stock market index of one of the world’s major financial centers.
A sectoral, thematic or strategic exhibition is also possible. It is thus possible to invest in semiconductors, health, artificial intelligence or growth companies, as non-exhaustive examples. ETFs therefore constitute a versatile investment solution, offering diversification between several assets. Certainly presenting a riskier profile than investing in a traditional savings account, the ETF in return offers a much higher return potential. It can be traded, for purchase and sale, under optimal liquidity conditions, with your broker.
Alternative 2: dividend stocks
Another alternative to put dormant money to work, with controlled risks, is the acquisition of shares. Let us understand clearly: we are not talking here about active, mobile investors, choosing to aggressively trade back and forth on securities on the stock market in the hope of making regular capital gains, but about so-called “good father” investments. » on very specific stocks, those whose companies have regularly distributed generous dividends for many years. We then talk about recurrence of the dividend, or a generous distribution policy, which is structural in certain sectors, such as real estate for example.
Concretely, to receive the dividend, otherwise called a coupon, you just need to be a shareholder of a company that distributes one and… that’s it! There is nothing else to do but wait for the moment when this dividend is voted on at the general meeting. Generally a few weeks later, the amount of the dividend is mechanically detached from the share price, and the “cash” amount is paid into the “liquidity” part of your account (securities account, PEA). Beyond this “rent”, the share price, over a long period, can naturally appreciate and participate, thanks to the added value on the day of resale, in the progression of the capital initially invested.
Alternative 3: savings plans with high interest rates
We are not talking here about the traditional Livret A or B, but about savings accounts with a higher return. Being able to conveniently constitute an intermediary of choice between traditional deposits and riskier investments (bonds, mutual funds, live securities), these savings accounts have the particularity of generating higher interests, even much higher, than those of traditional savings accounts, but they are taxed.
Furthermore, these savings accounts can be “term”, offering an even higher interest rate, on the sole condition that the funds paid are not withdrawn before a certain date, which is called maturity. .
Alternative 4: Long-term savings plans from Freedom24
Freedom24 (Freedom Holding Corp group listed on Nasdaq), an investment platform, offers long-term savings plans, paying up to 8.76% per year in $ and up to 6.38% per year in € on term cash investments.
Interest accrues over a fixed period with 3, 6 or 12 month term plans. There is no payment limit. The return can also be “boosted” by up to 0.8% per year, on envelopes greater than $100,000 or €. Finally, the amount of the minimum initial contribution, when opening the booklet, is $1,000 or €.
Very liquid, the investment can be opened very easily, and the funds can be withdrawn early, without delay, and without penalty on the amount of the initial investment.
To start earning interest now, customers can place funds: – Using the Freedom24 app, which has a “long-term money investment” feature, or – By logging into the website of Freedom24, in the “long-term money investment” section in the Cash section of the members area.
In a word… We have seen that investors who are looking for returns higher than those offered to them by traditional savings accounts have a range of investment choices, with a moderate or intermediate risk profile. It is always essential to emphasize the importance of aligning investment choices with individual risk tolerance and long-term financial goals.
ETFs thus allow timely diversification for a portfolio, stocks with high dividends allow you to regularly receive the amount of a coupon, while maintaining your investment in the stock, and high-yield savings accounts allow you to go look for a more attractive return than the Livret A for example, the preferred investment of the French, which only pays 3% net.
Be curious, there is a world of investment solutions to explore beyond traditional deposits. The term savings accounts offered by Freedom24, due to the quality of the sacrosanct return-risk-liquidity triangle, constitute a first choice solution.
This content was produced in partnership with Freedom24. The BFM Bourse editorial staff did not participate in the production of this content.