SACCOs are primarily designed for credit facilities, so if you’re not planning to take a loan, saving in a SACCO may not make the most sense for you.
While saving in a SACCO offer relatively fair dividends at the end of the year, there are other platforms where your money could earn better returns, especially for longer-term savings.
If you’re looking for a short-term place to park your money, banks are ideal for transactional purposes—money you plan to access within the next two months.
For funds that you’re setting aside for longer than two months, a Money Market Fund may be a better option.
These funds provide higher interest than savings accounts and allow you to grow your wealth over time.
They’re best for money you don’t need to withdraw quickly.
While platforms like M-Shwari can be good for short-term money you plan to use soon, a money market fund will outperform when you want to save for the medium to long term.
If you’re looking for a short-term investment with very low risk, Treasury Bills might be the way to go.
They are offered in three maturity periods: 91 days, 182 days, and 364 days.
You can start investing with as little as 50,000 shillings, making them an accessible option for conservative investors seeking safer returns.
On the other hand, if you’re looking to lock your money away for a longer period, say between 1 to 20 years, Treasury Bonds would be ideal.
Treasury Bonds offer higher interest rates compared to Treasury Bills, and you can invest for periods as short as 1 year or as long as 20 years.
For retail investors, common options usually range from 2 to 10 years, providing solid returns for those who can commit their money longer.
Making smart financial decisions starts with choosing the right investment tools for your needs. Whether you’re saving for the short-term, medium-term, or long-term, here’s a simple guide to help you maximize your money.
Short-Term (Up to 2 Months)
For quick and easy access to your funds, bank accounts or M-Shwari are ideal options. These allow you to store money securely while maintaining liquidity, making them perfect for emergencies or short-term goals.
Medium-Term (A Few Months to 1 Year)
If you’re looking for higher returns with some level of accessibility, consider Money Market Funds (MMFs). These funds typically offer better interest rates than savings accounts and are a great choice for those with a medium-term horizon.
Long-Term (1 Year and Above)
For those aiming to grow their wealth over a longer period:
- Treasury Bills: Low-risk instruments suitable for short-term investment within the long-term strategy.
- Treasury Bonds: Offer steady and higher returns, making them ideal for financial stability over several years.
In summary, the best platform depends on how long you plan to set aside your money:
- Short-term (up to 2 months): Bank accounts or M-Shwari for easy access.
- Medium-term (a few months to 1 year): Money Market Funds for higher returns and controlled access.
- Long-term (1 year and above): Treasury Bills for low-risk short-term, or Treasury Bonds for steady, higher returns over several years.
By aligning your financial goals with the right investment tools, you can secure a brighter financial future with ease.
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