Finding a low-risk option that pays more than 5% is a real challenge today, whether people need a place to stash their emergency fund or a down payment for a home. Banks offer high-yield savings accounts that barely pay 3 percent. To put that in perspective, a year’s investment of $500,000 yields only $15,000 in simple interest at the stated interest rate.
With traditional term deposit accounts paying only a little better than next to nothing in interest, more and more individuals are looking for better-paying alternatives. Interest rates are still hovering around historic lows, and savers are hard-pressed to enjoy favorable interest rates on deposits kept in traditional savings accounts.
The rise of fixed-interest solutions
The average interest rate on a traditional bank account across Australia is only around 2.5 percent. The good news is that there are several low-moderate risk options for raising one’s interest rate. These fixed interest opportunities, such as the one offered by “Provide Capital,” offer individuals a higher return of up to nearly 8.5% per year.
Fixed interest solutions pay out a set level of cash flows to investors, typically in the form of monthly interest payments. Unlike equities that may not pay out cash flows, the payments of interest are generally known in advance and remain fixed throughout.
In addition, these solutions are popular among conservative investors seeking a diversified portfolio. How much of a portfolio is made up of fixed income quite often depends on their stage of life, lifestyle and other financial circumstances.
Does Provide Capital have the best fixed-interest solutions?
The management team at Provide Capital aim to give clients consistent risk-adjusted returns underpinned by a diversified portfolio of assets including credit, private equity, and real estate. With a rigorous and disciplined process that prioritizes due diligence and pinpoints value, the team’s experience and expertise in analyzing opportunities mean they are prepared to pay meaningful rates of interest for access to capital to grow the underlying portfolio.
“Our fixed interest solutions cater to the large number of clients Australia-wide seeking alternative ways to deploy their capital to earn income. More people are becoming aware of ways to mobilize their capital and we enjoy hearing about the difference our service and more income makes to people’s lives,” says Mario Tabone, Provide Capital’s Senior Relationship Manager.
Provide Capital is becoming the preferred fixed interest option for many Australians
Provide Capital is wholly owned by an international asset management firm. Its mission is to bring about positive change in society by making meaningful investments that deliver profit and social benefit.
Clients earn 5.25-8.45% per annum on their funds with Provide Capital, and interest payments are made monthly. Their team’s approach is focused on quality opportunities that can generate competitive returns whilst managing risk through a heavily diversified portfolio of non-correlated underlying assets.
Another reason Provide Capital has become such a popular choice is because of the high level of customer service they provide. Their team of experts is always on hand to answer any questions their clients may have, and they will also provide all the information they need to make an informed decision about their investments.
With the ROI benefits and superb client relationship management, Provide Capital is set to be the most preferred option when it comes to making wise investment decisions.
