Cash investments typically involve putting money into an account with either a bank, building society, or national savings organization. It is also possible to lend money to the government with treasury bills.
The cash deposited into an account is used by the financial organization in their own business. They take the money as a loan and pay the individual an interest payment (usually less than 1%).
Interest payments are a source of income for the individual, who receives all of their money back after the organization is finished with it. The individual usually won’t notice any difference in their account.
An individual can make more money with cash investments by agreeing to not have access to their cash for a fixed term or by agreeing to give a certain notice period to the company to access the money.
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