How to grow your money when a traditional savings account just isn't cutting it
Traditional savings accounts aren’t the only way for saving anymore. Here are four new ways to grow your wealth more sustainably.
A note: Please kindly note that Cenoa does not provide investment, tax, legal or accounting advice; and this material has been prepared for informational purposes only. You should consult your own advisors before engaging in any transaction. You can find detailed disclaimers on Cenoa’s website.
One of the most common ways to save money is to add extra money to a traditional savings account at a bank But traditional savings account risks like low yield rates and the heavy toll of local currency inflation are leading people to seek out new, alternative ways to grow their funds. The U.S. national average yield for savings accounts currently sits at just 0.53%, and investors want to see higher returns on their hard-earned cash.
The challenges of growing your money with traditional savings accounts in today’s economic climate
When looking for alternatives to a standard savings account, you may consider a high-yield savings account (HYSA). And while there are advantages to this type of account, there are risks that come with high-yield savings accounts with traditional banks.
Many HYSAs have limited flexibility on how and when you can remove your funds.
Your ROI may not be as high as you expect, and can dip below the inflation rates in your country.
HYSAs are subject to rate changes over time based on the economy.
But savings accounts are no longer the only strategy you can take to build wealth. “If people want to fight inflation,, we need new financial services based on new thinking,” said Seçkin Çağlın, co-founder and co-CEO of Cenoa.
How to make your money grow without risking your savings
New financial services and strategies are reworking the financial landscape in order to put power back into investors’ hands as they look to make their money grow. Here are four ways you can grow your money without risking your existing savings.
1. Set specific goals you want to achieve by growing your money.
Before choosing a new strategy to grow your money, set specific goals that you want to achieve. This will help give you a clearer idea of what you need out of your financial strategy and technology and help you to align your priorities.
Break your goals down into the short, medium, and long-term. For example, a short term goal may be an upcoming vacation while a long-term goal may be to grow your retirement fund.
2. Invest your savings strategically.
While investing of any kind can come with risks, there are ways to minimize savings risks while investing strategically. Making use of flexible options like DeFi superwallets with high yield will allow you access to your savings should you need it while your money continues to grow — no matter the reason.
Exploring stronger currency options like USDC or digital dollars as opposed to local currency that can weaken at any time, helps ensure that your savings remain stable in the long term.
3. Keep extra savings in a DeFi super wallet.
A DeFi superwallet like Cenoa is a great way to invest in new financial technologies while minimizing risk. You don’t have to go all in right away, you can start small and just put away a few dollars here and there. With fantastic yields of up to 5%, your dollars will grow for you — even if you only contribute a small amount.
4. Consider using fintech apps, like Cenoa, to grow your money faster than traditional banks.
Fintech apps like Cenoa offer up a solution to growing your money outside of traditional banks that cuts out the middleman. Cenoa is a superwallet that gives users the chance to earn up to 5% yield on digital dollars, without having to pay fees. This yield is much higher than a traditional HYSA, which typically offers lower yield and comes with restrictions and holding periods.
Cenoa has built a system that prioritizes people, not financial institutions. “We are like a non-custodial wallet, but we make it streamlined and super simple and secure just to buy stable coins,” said Çağlın on how Cenoa operates. The Cenoa Super Wallet offers access to digital dollars that are much more stable than other types of currencies.
Fintech wallet apps like Cenoa are a strategic alternative to grow your money during an unstable economy
Learn how to grow your money with the Cenoa Super Wallet’s strong yield in a stable, secure way where the power is in your hands.