Yesterday my partner came up with an idea to deposit a good some of money in a fixed deposit account on an online banking platform offering a 13% interest rate, they offered to pay the interest upfront but the initial deposite would be locked in till the exact stipulated time. Though this may sound like a good deal I discouraged him from making this investment for the following reasons.
Firstly with the rate at which the traditional currency in my country is steadily loosing value and the proposed profit and initial deposit might just be valueless at the matured time this deal might be of little or no value.
Secondly these platforms in my opinion cannot be trusted as different reasons can lead to their folding up and shutting down. I understand that life's a risk but some risks are not worth taking.
On the other hand I offered a solution. I asked him to invest in Bitcoin, now even though the price of bitcoin is volatile, in my opinion it is still more profitable to invest in Bitcoin especially for long term investment than in any fixed deposit scheme.
If you were in the position to give financial advice to someone looking for a long term financial investment, what would you advice?...
Please you should advice your partner not to invest his money into such a platform because it looks like a new trick to steal people's money. The whole thing looks fishy, this kind of investment could be likened to the devil who will give you shoes and collect your legs. Scammers are smart set of persons and they have high IQ. They are luring people to the platform by offering to pay all the interest upfront, while the capital remains with them until the time is due to cash out. I'm very certain when many persons have onboarded the platform, they will runaway with their money. He could invest the money in bitcoin, stocks, real estate etc. but not this platform because it's a scam.