Saving & Investing

What is “saving”?

• Putting money aside safely for future use (e.g. purchasing and emergency)

• Saved money can be used when we need it and it has low risk of losing value.

What are some characteristics of saving?

• Very low risk

• Easy to withdraw

• Low return (low interest)

• Used for short-term goals

What are the 2 main categories of saving products?

• Saving account = easy for accessing your cash

• Term deposits (บัญชีเงินฝากระยะยาว) = where your money is blocked until maturity in return for higher interest rate

Describe “saving accounts”

• A bank account where you can deposit and withdraw money anytime (usually without restrictions)

• May have to pay some fees

What are some features of saving accounts?

• High liquidity (easy access)

• Low interest rate

• Suitable for daily use

• No fixed time period

What are the 4 types of saving accounts?

• Regular savings accounts

• Money market accounts

• Certificates of deposit

• Automatic saving plans

Examples of saving accounts in everyday life

• ATM card

• Online transfer

• Emergency fund

Benefits of “regular savings accounts”

• Creating a holding cell for worry-free finances

• Have low interest rate

• Can deposit and withdraw anytime

Benefits of “money market accounts”

• A safe place to invest individuals’ earnings

• High liquidity

Benefits of “certificates of deposit”

• Allow individuals to receive interest periodically over the lifetime of their investment.

• Example = insurance

Benefits of “automatic savings plan”

• Automatically transfer money from online checking account into savings account monthly for a specific amount chosen

Which Thai financial institution give the best annual deposit interest rate?

ไทยเครดิต

What is “credit cooperative”?

• A type of financial institution

• Members = ppl who have the same job/living in the same community.

What is the purpose of credit cooperative?

• Promote savings among members

• Provide loan funds for productive investment.

Describe “deposit insurance”. What does it do?

• “deposit protection” “ประกันแบบสะสมทรัพย์”

• Used to protect bank depositors from losses caused by a bank’s inability to pay its debt when due.

• Promotes financial stability

What is “investing”?

• Using money to earn more money over time.

• Asset is bought or putting money into a bank to get a future interest from it.

Define “investment”

• The total amount of money spent by a shareholder in buying shares of a company.

• “long-term savings”

What are some characteristics of investing?

• Higher risk

• Higher potential return

• Money may go up or down

• Used for long-term goals

What are some examples of investment?

• Stocks

• Bonds

• Mutual funds

• Real estate

What is “investment products”?

• A product offered to investors based on an underlying security/group security that is purchased with the expectation of earning a favorable return.