Make your money work as hard as you do

It is true, the more you save, the luckier you get and more you accumulate

Saving and investing money isn't rocket science, and yet we see people that are monetarily ambitious but financially clueless. Their best bet is to reduce their expenditure and squirrel away some cash every month. The strategy is fine for a start, but over a period of time, it is important to deploy cash into financial instruments that make money work as hard as you do. 
For now, a huge chunk of savings is held in time and savings deposits of banks that yield up to a maximum interest or profit rate of 2.5 per cent per annum. As on September 2016, the amount of savings in UAE residents' accounts swelled to over a billion dirhams. It is more than three per cent up when compared with the savings in resident accounts last year. 
If you are thinking about how to make the most of your savings without dabbling in high-risk instruments or losing liquidity, we have few options to suggest. 
Millionaire schemes: A number of banks in the UAE offer savings accounts that incentivise people to save. The more money you have in your account, the luckier you get. Of course, there is a minimum threshold for such accounts, but instead of getting intimidated by the figure, make it your aim and save for it every month. These draws are usually conducted at a regular frequency, mostly every month, and have a number of consolation prizes too. Union National Bank, for instance, offers the Al Awwal Savings Certificate that gives residents a chance to win about 10 times of their savings value, by up to Dh5 million. 
Fixed deposits: One of the other ways to generate extra income in a safe and virtually risk-free way is to stash accumulated money in a fixed deposit. And here the trick is to find out which bank pays the highest interest or profit sharing rate for a defined period. Get active, and search online for fixed deposit schemes that interest you. There are a number of websites that aggregate such information, such as www.compareit4me.com, www.moneycamel.com, www.souqalmal.com, etc. 
Once you have zeroed in on the bank, open an account with them and deposit the money. A different bank account for accumulated savings also helps psychologically and is likely to keep it safe from any premature withdrawals. 
National Bonds: Forced savings are sometimes the best way to streamline money management. A fixed automatic withdrawal date inculcates financial discipline, and with National Bonds, you can align your goals with the choice of account. For instance, if you are looking to save to make a down payment for a car or a house, or even save money for your children's education, annual fee of school, you can choose a savings option with a time frame of a year. 
The idea is to start savings. Once you do, and do it through right channels, you will generate wealth that will give financial cushion for life and independence to live life your way.
-suneeti@khaleejtimes.com

• UAE