Investing in Stock Market vs. Opening a Bank Account

College semesters, retirement accounts, and home improvement projects—we all have something that we are hoping to save up some money for. You can take on more hours at work and perhaps pick up a few odd jobs on the side to get a little extra income. If your lucky, you might even be able to procure a pay raise from your employer. But no matter how hard you work, it seems like you are never able to earn enough money to finance whatever it is that you want to do.

There are two things that you can do, in addition to working more hours and accepting side jobs, that will help you increase your funds. The best part is that both of these things can be done without your ever having to break a sweat. Both investing in the stock market and opening a high interest savings MA account can help you double your money. But which one is actually better?

Your financial circumstances are uniquely yours. Your personal financial goals are probably significantly different from your friend’s or your neighbors’. And since your wants are one of a kind, your investing strategy must be customized to suit your needs. Therefore, the answer as to whether investing in the stock market is better than simply opening a high interest savings account depends entirely upon your individual needs. There is no rule stating that you have to choose between one and the other. Indeed, if you want, you can open a savings account and invest. However, it is still important to understand how each strategy works and how they compare.

1. The Stock Market—You do not have to be a financial expert to invest in the stock market, although you can hire one to help you create a decent investment strategy. Investing in a company’s shares can be one of the best ways to double your money. However, this financial strategy does come with quite a lot of risk attached. While staying up to date with the newest consumer trends, and reading financial journals can maximize your chances of stock market success, there is always that chance that you could lose your money. Investing in the markets is a gamble. But when you invest the right way, you can get a huge return for your funds.

2. High Interest Savings Accounts—The only real risk that comes with a high interest savings MA account is that the bank might go under. But when you open an account with a reputable financial institution and abide by the prescribed rules of the account—such as maintaining the minimum balance—you can’t really go wrong. All you have to do is set aside your funds, leave them untouched, and allow the magical monetary tool of compound interest to do its thing. The longer you hold your savings account, the greater the interest rate, and the more your money will be able to grow. It’s that simple.

Opening a savings account with a decent interest rate is a good idea no matter who you are. But there is no doubt that when you make a wise investment decision—or a few—your money can double in a matter of seconds. Talk with a financial advisor to create a customized financial strategy that will help you meet your goals.