Have you taken a look at the interest rates on your savings accounts recently? Right now, the majority of savings accounts offered by the big four banks come with base rates of just 0.05%.
That means that if you had $1 million sitting in one of these accounts, you would only earn interest of $5,000 a year.
Because of this, I continue to believe that it is better to put your money to work in the share market, rather than leave it to earn just paltry interest in an account.
If I had $5,000 in a savings account and no immediate use for it, I would consider investing it into one of these ASX shares:
Appen Ltd (ASX: APX)
The first ASX share to consider investing $5,000 into is Appen. It is the global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. Its team of 1 million+ crowd-sourced workers allows the company to collect and label high volumes of data used to build and improve artificial intelligence models for some of the biggest technology companies in the world. This includes the likes of Facebook, Microsoft, and Apple.
Due to the growing importance of artificial intelligence and machine learning and Appen’s leadership position in its field, I believe it is well-placed to capture the increasing demand and deliver strong earnings growth long into the future.
Pushpay Holdings Ltd (ASX: PPH)
Another ASX share to invest $5,000 into is Pushpay. It is a donor management system provider with a focus on the faith sector. Pushpay’s innovative solutions simplify engagement, payments, and administration, allowing users to increase participation and build stronger relationships with their communities.
Pushpay has been growing at a very strong rate in recent years and FY 2020 was no exception. In FY 2020 the company delivered a 39% increase in total processing volume to US$5 billion and a 33% increase in operating revenue to US$127.5 million. Pleasingly, this strong growth is expected to continue in FY 2021, with management forecasting its operating earnings to double. After which, it is aiming to capture a 50% share of the medium and large church segments in the future. This represents a US$1 billion revenue opportunity.
5 stocks under $5
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- Are ASX tech shares the only way to protect your portfolio against the coronavirus?
- 3 of the best ASX tech shares to buy and hold until 2030
- 3 unstoppable ASX shares to buy right now
- WAAAX shares see mixed recovery from COVID-19
- Pushpay and 1 other 5-star ASX share to buy right now
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Invest $5,000 into these ASX shares immediately appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3fg2sgE
Leave a Reply