Money In The Bank Or Money In Property?

Money In The Bank Or Money In Property?


Nowadays, more people are becoming wiser in handling their hard-earned money. To secure a better future, investing is a popular option for business-minded individuals. However, we have different risk appetites. For conservative investors, keeping money in the bank and investing in property are options they can consider.

But which is better? To better understand, here are the facts to help you choose which works for you.


Money In The Bank

This is what we identify as a savings account. In reality, keeping a savings account is not for building wealth, it’s having a safe location to just keep your money. It can increase your net worth, but keeping money in the bank with low-interest rates does not make good investments.

In a recent article, the Bank of England forecasted inflation to hit 4% this year as Britain’s robust recovery from the pandemic accelerates at a blistering pace. In comparison, the interest rate from the bank is only 0.01%.

That means that if you’re saving in the bank for investing purposes, you are losing money. The number may stay the same, but the buying power of that money is decreasing every year with inflation. 

Saving in the bank provides you with a spot to keep some money for reasons other than investing. A healthy savings account is one of the best ways to protect your investments.

In essence, a savings account is good for protecting your investments, preparing for emergencies, and peace of mind in your financial life, but it is not an ideal option for growing your money.


Money In Property

A more popular means of investing, with sure returns, is investing in property. Investing in real estate, when done correctly and strategically, can generate wealth. It is tangible, and there is more than one way to earn money. 

That being said, we’ve narrowed down some strategies for investing in property.

Rental Properties

Owning rental properties can generate a steady cash flow for an extended period of time. There’s always a market for this. Young families, young professionals, and immigrants are some of them. If you have the patience to manage tenants, this is for you.

House Renovation Flip

The fix-and-flip culture has exploded. Thanks to the popularity of home renovation shows. There’s a massive opportunity for income in this strategy, but you also need to find the perfect properties to flip.

Vacation Rentals

Airbnb is a perfect example. Vacation rental or short-term properties are accommodations that travellers can rent on a short-term basis. These accommodations range from high-end luxury properties to spare bedrooms in other people’s apartments.


HMO’s are very attractive investments. HMOs, include residential accommodation, which is the main home for three or more unrelated people. The multiple occupancy/student market continues to grow. It produces high rental yields and is in demand due to the rise of the population.


The Bottom Line

If your purpose is to grow your equity and have a steady income stream, then property investing is definitely for you. Depending on how you prefer to invest, there are several options to choose from. However, in every investment, you should do your due diligence in knowing all the risks, facts, and numbers. Successful investments involve dedication, commitment and patience. 

On the other hand, if you only want to save for emergencies or want a spot to store your money for unexpected expenses, money in the bank is a safe place to keep it. 

Again, it’s a safe location just to keep your money, but it is not an ideal option for growing your money.


Investing in Property

We make property investing simple for people who want to benefit from high-quality property investments without investing their own time or resources. Our investors can benefit from a passive income on a fixed term, backed by a brick and mortar asset and a team of experienced property investment professionals.

Are you interested in finding out more?

Download our investor brochure by clicking the button below.