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Greetings LebGeeks,
I'm a bit confused about what to do, I got around 1000$ cash and was wondering what to do with them.
I got the idea of opening a savings account (in LBP , since i will get higher rates than usd according to a 2-year-old post here).
A)What bank offers best rates?
B)Can anyone tell me what are the rates if:
1) I froze the money for 6 months
2) I froze the money for a year
3) I froze the money monthly

Is it possible to reach $10,000 in the next 5 years (adding like 400$ after each freeze) ?

Thank you :D
Unfortunately 1000$ is nothing money wise, especially for the bank. The only thing you can do bank wise is to open an account with it. Rates on dollars are extremely low. Rates on LBP can reach 3% on higher amounts ( like 15 000 000 L.L. or higher). But unfortunately they cannot give you any rates on a small amount such as 1000$. You can simply ask on the phone or head to your nearest bank. Remember that your account has fees on it so you end up loosing money.

+ As for an investment with a 1000$, the only thing I can think of is that if you live in a house owned by you or your family, and you haven't installed a solar water heater, this could be your best investment with an amount of 1000$. IF and only IF you use a lot the electric water heater, you can decrease your electricity bill by more than 70% ( Tested )
@Specility


From My Experience in the Financial Field

If You Deposit Only 1000USD or 1,500,000 LBP

(FV = Future Value , PV = Present Value You Have , R =Yearly Interest Rate , N = Period)

Interest Rate of 5.25% (Assume it Is an Average but it Fluctuates from Bank to Bank But with a small margin) on LBP which Lebanese Banks Gives on Average - How Many Years You Need to wait to Obtain 10,000 USD (15,000,000 LBP from 1,500,000 LBP)


FV = PV (1 + r) pow (n) = 15,000,000 = 1,500,000 (1.0525)pow (n) = Ln(15,000,000/1,500,0000) = nLn(1.0525)
Therefore N = Ln(10) / Ln(1.0525) = 45 Years

You Need To Wait 45 Years Dude in Order to Obtain 15,000,000 LL from a Deposit of 1,500,000


Blom has a Program for Small Deposits

Accounts

Oumnyati Account


The new ‘Oumnyati’ savings account is another extension of BLOM BANK’s peace of mind designed to provide you with interest on small amounts of money. ‘Oumnyati’ is a time deposit account that allows you to save for a brighter future from as low as 50$ or 75,000 LBP per month!

How does the OUMNYATI savings account work?
• Deposit between 50$ and 2,000$ (or 75,000 LBP and 3,000,000 LBP) on a monthly basis, and see your deposited amount increase with the following annual interest rates:

USD account LBP account
1st year 2.5% 4.5%
2nd year 2.75% 5%
3rd year 3% 5.5%


Onward Preferential rates*
• The interest amount is paid monthly so you can see your money grow.
• After the first 3 years, you can withdraw the entire amount in addition to the accumulated interest rates.
• Booster Payments: you are allowed to place two additional booster payments per year with total amount up to 10 times the monthly
payment for a fee of 5$.- See more at: http://www.blomretail.com/retail/savings-account-lebanon#sthash.g91gikRR.dpuf

You Can Apply the Above Formula to how much you get after 3 years.
Tech Guru wrote@Specility


From My Experience in the Financial Field

If You Deposit Only 1000USD or 1,500,000 LBP

(FV = Future Value , PV = Present Value You Have , R =Yearly Interest Rate , N = Period)

Interest Rate of 5.25% (Assume it Is an Average but it Fluctuates from Bank to Bank But with a small margin) on LBP which Lebanese Banks Gives on Average - How Many Years You Need to wait to Obtain 10,000 USD (15,000,000 LBP from 1,500,000 LBP)


FV = PV (1 + r) pow (n) = 15,000,000 = 1,500,000 (1.0525)pow (n) = Ln(15,000,000/1,500,0000) = nLn(1.0525)
Therefore N = Ln(10) / Ln(1.0525) = 45 Years

You Need To Wait 45 Years Dude in Order to Obtain 15,000,000 LL from a Deposit of 1,500,000


Blom has a Program for Small Deposits

Accounts

Oumnyati Account


The new ‘Oumnyati’ savings account is another extension of BLOM BANK’s peace of mind designed to provide you with interest on small amounts of money. ‘Oumnyati’ is a time deposit account that allows you to save for a brighter future from as low as 50$ or 75,000 LBP per month!

How does the OUMNYATI savings account work?
• Deposit between 50$ and 2,000$ (or 75,000 LBP and 3,000,000 LBP) on a monthly basis, and see your deposited amount increase with the following annual interest rates:

USD account LBP account
1st year 2.5% 4.5%
2nd year 2.75% 5%
3rd year 3% 5.5%


Onward Preferential rates*
• The interest amount is paid monthly so you can see your money grow.
• After the first 3 years, you can withdraw the entire amount in addition to the accumulated interest rates.
• Booster Payments: you are allowed to place two additional booster payments per year with total amount up to 10 times the monthly
payment for a fee of 5$.- See more at www.blom retail.com/retail/savings-account-lebanon#sthash.g91gikRR.dpuf

You Can Apply the Above Formula to how much you get after 3 years.
Thanks, but it seems you left the part of "adding like 400$ after each freeze"
About the blom OUMNYATI account "Deposit between 50$ and 2,000$ (or 75,000 LBP and 3,000,000 LBP) on a monthly basis" , how does it work exactly aside from depositing money monthly,
are those money frozen?
do i get to withdraw in case i needed some money?

Thank you :D
Why not buy gold? It devaluates less than money.
rolf wroteWhy not buy gold? It devaluates less than money.
Hmmm this is a good idea to be honest, but how do I know the price of gold?
I mean i can google the price, but how do i know whether its high or low, whats the line that determines that?
specility wrote
rolf wroteWhy not buy gold? It devaluates less than money.
Hmmm this is a good idea to be honest, but how do I know the price of gold?
I mean i can google the price, but how do i know whether its high or low, whats the line that determines that?
AFAIK the price of gold is mostly determined by the offer and demand on the global market.

The offer of gold is relatively constant, compared to currency. Whereas banks and governments constantly produce more money, causing inflation and loss of value (and slowly and indirectly passing deficit to the people using the currency), gold, on the other hand, is extracted at a more constant rate. Gold cannot be "created" like money, it has to be extracted from the soil, so the supply is much more stable, and has been so across the ages, this is why gold has been used as a reliable way to store wealth for like thousands of years, for governments, etc.

Anyway, I am no specialist in gold - if you look online you'll probably find global prices. If you go to a local gold dealer - I don't even know where you should go (probably Burj Hammoud!) - I imagine the cost of gold will be based on these prices plus a commission, so you need to shop around for the best deal.

The main idea was that, if you do nothing with your $1000 and just keep them (without interest or anything), you are basically loosing money because every dollar slowly loose it's value due to inflation. Since it's difficult (as others said) to invest and have returns with such amounts, then if you convert them to gold, if you don't make gains off them, they should, at least, not loose value.

Again I'm not expert, just sounded like an idea, and I might try it myself when I have money to spare.



rolf wrote
specility wrote
rolf wroteWhy not buy gold? It devaluates less than money.
Hmmm this is a good idea to be honest, but how do I know the price of gold?
I mean i can google the price, but how do i know whether its high or low, whats the line that determines that?
AFAIK the price of gold is mostly determined by the offer and demand on the global market.

The offer of gold is relatively constant, compared to currency. Whereas banks and governments constantly produce more money, causing inflation and loss of value (and slowly and indirectly passing deficit to the people using the currency), gold, on the other hand, is extracted at a more constant rate. Gold cannot be "created" like money, it has to be extracted from the soil, so the supply is much more stable, and has been so across the ages, this is why gold has been used as a reliable way to store wealth for like thousands of years, for governments, etc.

Anyway, I am no specialist in gold - if you look online you'll probably find global prices. If you go to a local gold dealer - I don't even know where you should go (probably Burj Hammoud!) - I imagine the cost of gold will be based on these prices plus a commission, so you need to shop around for the best deal.

The main idea was that, if you do nothing with your $1000 and just keep them (without interest or anything), you are basically loosing money because every dollar slowly loose it's value due to inflation. Since it's difficult (as others said) to invest and have returns with such amounts, then if you convert them to gold, if you don't make gains off them, they should, at least, not loose value.

Again I'm not expert, just sounded like an idea, and I might try it myself when I have money to spare.
Hmm I see, you are right that if I did nothing I'm losing. Thanks for your help :)
I second rolf, for the past few years, gold's price has been increasing for the past few years. I remember it was almost half like 5 years ago.
NuclearVision wroteI second rolf, for the past few years, gold's price has been increasing for the past few years. I remember it was almost half like 5 years ago.
So basically its better to buy gold as soon as possible (near future) or wait for a decrease?
specility wrote
NuclearVision wroteI second rolf, for the past few years, gold's price has been increasing for the past few years. I remember it was almost half like 5 years ago.
So basically its better to buy gold as soon as possible (near future) or wait for a decrease?
There won't be a major decrease soon.
Actually gold value might increase in the coming years if greece exists euro-union, due to not paying its debts.
NuclearVision wrote
specility wrote
NuclearVision wroteI second rolf, for the past few years, gold's price has been increasing for the past few years. I remember it was almost half like 5 years ago.
So basically its better to buy gold as soon as possible (near future) or wait for a decrease?
There won't be a major decrease soon.
Actually gold value might increase in the coming years if greece exists euro-union, due to not paying its debts.
So I guess I'm buying as soon as possible.
Thank you for your help :D