Alternative to a deposit – 3 options to replace a bank deposit and earn

An alternative to a bank deposit or deposit – many investors who keep their money in a bank think about this. Most often this happens when rates are testing the bottom, i.e. very small, and keeping money in the bank is simply not profitable.

What is the point of keeping money in the bank if the deposit rate is 4%, and at this time you can buy OFZ with a yield of 7%?
OFZs are, first of all, state securities and there are more guarantees for them than for deposits in any bank.
Where would you invest money INSTEAD of a deposit?
I would buy OFZ (federal loan bonds)
I would buy an apartment and receive rental income
I would buy a dollar or a euro when they fall. And then he sold it.
None of the above is better than a contribution

Alternative to a deposit
Alternative to a deposit

A deposit in a bank is primarily a way to earn money. Invest money and sleep peacefully. The deposit as a financial instrument is characterized by the following properties.

Simplicity and clarity. I invested money and you know when it will be possible to withdraw the deposit and when there will be interest. Deposits are clear even to an ordinary student
Preservation of the nominal value of the deposit in any case. Even if you close the deposit at the demand rate, you will receive the original deposit amount. The amount of the initial deposit will not decrease in any way, well, except in the ruble equivalent, if you invested in dollars
State protection. Deposits up to 1.4 million rubles are protected by the state if your bank is connected to the deposit insurance system.
In short, simplicity, stability, and reliability are the key concepts of a deposit as a financial instrument. The risks are small, but the interest on deposits is also small. It is very difficult to meet a rate of more than 10%. But the guaranteed return is understandable and realizable.

What do they propose to replace deposits with?
Popular publications (such as compare ru), which you can find on the first page of Yandex or Google, offer to replace deposits with BPIFs, buy shares, structural notes, take out accumulative life insurance or ILI.

But not one investment product does not exactly have the 3 properties described above that the deposit has. The yield on investment products is precisely potential,attractive
therefore, all this is attracted and does not make any sense for an ordinary person.

Therefore, no financial instruments (except bonds) that are traded on the stock market can be an alternative to a deposit.
You should know about this and not believe people who recommend replacing the deposit with a brokerage account. This is no longer a contribution and the risks are completely different. There is no guarantee of income.

What financial instrument is closest to the deposit?
The closest financial instrument similar to a deposit is federal loan bonds or OFZ. The state is unlikely to declare itself bankrupt, so the reliability of such securities is high.

The coupon is usually fixed and paid on a specific date. Those. there is a guaranteed return.
The main differences between OFZ and deposits:

As for simplicity and clarity, it’s more complicated. You need to study different aspects of owning bonds: when income is paid, what taxes on the income you need to pay when it is better to buy bonds to earn.

Expert opinion
Dmitry Tachkov
Project creator, finance expert, financial blogger. More than 5 years worked in Russian banks. Author of more than 1000 articles on investment, lending, banking services
See also: Is it worth carrying money to Sberbank?
Ask a Question
Buying bonds is associated with the presence of a brokerage account, which not everyone wants to open. A brokerage account has many subtleties in use, not everyone wants to delve into it
Investing in real estate is another way to replace the investment
Investment in residential real estate as an alternative to a deposit can be used to save money.
The meaning is simple – you buy a home and start renting it out. Housing generates income every month.

The main advantages of this method of investing money:

Simplicity and clarity. No need to study any financial instruments – buy and sell. Get paid every month.
The housing may become more expensive; your assets increase in value. The cost of an apartment in large cities can rise
There are also many disadvantages of investing in real estate:

Risk of loss of book value as a result of damage to property, fire, etc.
The apartment needs to be taken care of. It is not always possible to rent a house right away.
There is no guaranteed fixed income. Rent prices can go up and down.
Low liquidity – it is not always possible to immediately sell housing, unlike bonds.
To sum up, investing in housing is something solid that you can hold in your hands and that will remain your property even during a period of turmoil and a stock market crash.

Real estate, as they say, is always valuable.

The third way to replace the deposit is the most difficult
Expert opinion
Dmitry Tachkov
Project creator, finance expert, financial blogger. More than 5 years worked in Russian banks. Author of more than 1000 articles on investment, lending, banking services
Ask a Question
I thought for a long time about how to replace the contribution. Came to mind: cryptocurrency, gold and platinum group metals, precious coins, another fin. instruments. But I have not found any financial instruments with reliability similar to deposits. I decided to propose what I would do if there was a task to place money with reliability similar to deposits
The main property of deposits is good reliability with a relatively low yield. Which can give a yield of 7-8% per year with reliability.

See also: What are savings certificates. Is it worth investing in them?
A currency came to mind, namely a multi-currency basket. For example, consider the dollar exchange rate for 2021.

Dollar exchange rate 2021
As can be seen from the graph, the dollar is either rising or falling. But if you wait and guess the moment of purchase, you can get the desired 7%.

For example, in 2021, the minimum rate was 69.27, then it reached 77.3. The difference is about 8 rubles between the minimum and maximum price.

We get from the minimum value of the dollar rose by about 11%. Here is the desired yield, which is even higher than the deposit rates.

Those. such a strategy. We are waiting for the specified price, we buy a dollar. Next, we put a take profit (sale at the specified price) and wait. When it works, we get income. Well, or we monitor the price and sell when we believe that the target income has been received.
You need to buy currency through a brokerage account, then the rate is as close as possible to the market rate and the dependence on bank commissions is minimal.

Judging by the dollar chart, there are times when it falls, but then it always bounces back. You just have to wait. If the target rate is not reached, then you will not lose anything. The money will remain in your account.
You can open an income card and keep your funds on it. It is similar to a bank deposit but allows you to have access to money at any time.

Risks of this strategy: you can get profitability = 0. I.e. if the dollar doesn’t rise or we forget to take profits.
This method has no issuer-specific risk and allows you to have access to money at any time. Dollars can always be changed (withdrawn from a brokerage account)

All of the above is not an individual investment recommendation but expresses the personal opinion of the author. It is quite difficult to achieve a higher yield with the same reliability as a deposit. The above instruments are practically devoid of risks, have a yield comparable to a deposit. They do not allow in most cases to overtake inflation.