In the big world of investing, it seems we hear a lot about what securities to invest in, but not as much about what types of accounts to invest in. There are so many different types of investment accounts, each covering a different purpose, and new types of accounts seem to be created weekly. The Central bank implements monetary policy by lowering or raising the inter bank interest rates and controls these rates primarily through open market operations , wherein the central bank trades short-term government bonds and treasury securities from banks and other financial institutions.
As banking firms have been performing diversified activities, investment banks have come to fill a variety of roles including underwriting and distributing new security issues, offering brokerage services to public & institutional investors, providing financial advice to corporate clients, especially on security issues, providing advices on merger and acquisition deals, providing financial security research to investors and corporate customers etc.
The former offers a fixed interest rate on your investment, while the latter offers a variable one, whose returns are entirely dependent on securities which the insurance company invests in. The rates offered are entirely dependent on the insurance company you buy it from and may be adjusted according to your age and life expectancy.
Many extensive investments are subsidiaries of larger banking institutions, and the rest have turned into household names, such as Morgan Stanley (It was titled the Best Investment Bank in Asia for 2008 by Asiamoney magazine), Goldman Sachs, JPMorgan Chase, and Deutsche Bank.
Also a conservative investment, you may want to consider these if you are looking to preserve and protect capital from the ravages of inflation while providing a consistent and dependable income, but your money may not grow at the rate you would prefer – but then we aren’t looking at capital appreciation anyway.