Where is the best place to keep money.

Storing money, especially large sums, always remains a complex and quite interesting question. After all, the security of these funds depends on where to store money. 

When considering the topic of where to best store money, it is worth considering different options. For example, even crypto. In this case, choosing what is better and safer can be done only based on your preferences and initial conditions. There is no universal option. 

Where is it safe to store money? 

When discussing where money can be stored, it is worth considering the country in which it is necessary to keep the funds. For example, in Ukraine in 2024, the conditions are quite challenging. 

Financial crises, inflation, and instability in international markets compel people to seek the most secure and effective methods of preserving their funds. War has not been an exception. When it comes to ways of storing money, there are several. Each has its positive and negative conditions. Today, there are many options—from bank deposits to investments in cryptocurrencies. 

Bank deposits 

Bank deposits remain one of the most popular and reliable ways to store money. Deposits are protected by state guarantees, which makes them a relatively safe option for people who are not ready to risk their savings.

Bank deposits are also among the oldest options compared to other methods. However, with each passing year, this method loses its attractiveness. Banks have demonstrated their not-so-stable safety. Although this method still has a number of its advantages. What we are talking about: 

1. In Ukraine, the Deposit Guarantee Fund operates, which insures deposits up to 600 thousand hryvnias.

2. A deposit can be opened in any bank, both in hryvnias and in foreign currency.

3. Interest rates on deposits are known in advance, allowing clients to expect stable profits.

As for the downsides of this system, for example, interest rates. In conditions of low inflation, income from deposits may not cover price increases. There are also so-called restrictions on access to funds. In most cases, money cannot be withdrawn until the deposit term ends.

The second and still popular option is investing in real estate. This is also a good option, which has significantly lost relevance during the war. 

Investing in real estate remains one of the most popular ways to preserve capital in Ukraine. In conditions of instability in financial markets, buying an apartment, house, or commercial property can be a good alternative. What are the advantages of this method: 

1. Complete independence from inflation. Real estate prices typically rise in the long term, protecting invested funds from depreciation.

2. Income from real estate, which is also a significant advantage. Renting out real estate can become a stable source of income.

If we talk about the disadvantages of such a system, it is instability during the war. Real estate may suffer. Additionally, purchasing real estate requires a large initial investment. Buying real estate also carries significant risks. The value of real estate can fluctuate, especially in conditions of economic instability.

Is it necessary to store money in foreign currency? 

Given the instability of the hryvnia, many Ukrainians prefer to store their savings in foreign currency—US dollars or euros. This is also a fairly popular option. This approach can protect funds from the devaluation of the national currency. However, in recent years, this system has also become quite unstable. 

What are the advantages of storing money in foreign currency: 

1. Protection against devaluation. The dollar and euro are more stable compared to the hryvnia.

2. Liquidity. Currency can be easily exchanged or converted into other assets.

However, this method also has significant disadvantages. Exchange rates can fluctuate, leading to losses during currency exchange. Additionally, keeping currency "under the pillow" does not yield any income, and interest rates on foreign currency deposits are usually lower than those on hryvnia deposits.

A similar and proven option, which is often available, is investing in gold. Gold is traditionally considered a "safe haven" for investors during periods of economic instability. In 2024, gold continues to be one of the popular assets for capital preservation.

Why is it worth storing money in gold: 

1. Gold retains its value over the centuries.

2. During periods of high inflation, the price of gold typically rises.

Despite all the advantages, this method also has significant downsides. Physical gold needs to be stored in a safe or a bank vault, which can be inconvenient. Additionally, unlike deposits or real estate, gold does not generate passive income.

There is also the option of investing in stocks and bonds. This is a more complex option, which is also affected by the state of the banking system.