One of the savings products par excellence is fixed-term bank deposits. But they have against them at the moment their low profitability. By offering an interest rate that rarely exceeds 0,5% levels. As a consequence of the monetary decision to lower the price of money by the community authorities and that of course has penalized the savings of bank users.
Either way, it is a financial product that is exempt from commissions and other expenses in its management and maintenance. Being its main incentive for it to be subscribed by small and medium savers in our country. Where there are several kinds of investment strategies to raise profitability of this format intended for individual savings. With another additional advantage that is that it is a product that can be contracted from very modest amounts by its individuals.
On the other hand, fixed-term bank deposits are constituted under various formats, which are what we are going to pass on to the reader. So that in this way, you can have a higher balance every year in your savings account. At a time when it is very difficult to obtain a very low performance and always below the expectations of the users themselves. In moments when the products that integrate to fixed income They are not having the best of times. If not, on the contrary, it is in a very complex scenario by some people who want to get a return on their money.
Deposits above 1%
To achieve this objective, it is necessary to address the impositions launched by the banks under commercial promotions. In this sense, from time to time they usually make offers of these characteristics that raise the profitability of this banking product to levels of 3%. Although with terms of permanence that are shorter and are marketed between 3 and 12 months maximum. Without the possibility of early cancellation unlike the rest of the fixed-term deposits. And of course free of commissions and other expenses in its management or maintenance.
While on the other hand, it should be noted that this saving model is developed for more demanding monetary amounts than in the other formats. In general, above the 2.000 or 3.000 euros and that they cannot be renewed on the expiration date. These being some of their most relevant contributions and that are the hallmarks that differentiate them from other products from the fixed income markets. As well as the fact that this class of term deposits do not allow the contracting of two or more products of these characteristics by our family members.
Contract other banking products
Increasing the level of loyalty with our lifelong bank always has a reward in the form of deposits with greater profitability. That is, through the hiring investment funds, pension plans or high-paying accounts Deposits may be subscribed with a higher interest rate than before. To the point that you can get up to 5% at best. Also through promotional offers that aim to reward its best customers.
While on the other hand, the acceptance of this strategy in family savings leads to the possibility of choosing between different models based on their subscribed amounts, terms of permanence or their format. With a wide variety of models that are adapted to the real needs of customers or users. So that in this way, they are in a better position to increase the weak intermediation margins that these banking products have at this time. Although in this case they cannot be canceled in advance either.
Link it to equities
The most aggressive formats are the ones that offer the best remuneration at the moment and can also reach a annual and fixed interest of 5%. But in this case, there will be no other solution than to link these bank deposits to financial assets of equities. As for example, as for example the shares of publicly traded companies. But maintaining a somewhat particular mechanics and that you need to know before subscribing it so that in this way you do not get any surprises during the period of permanence.
This class of fixed-term bank deposits are characterized by the fact that the possible profitability that can be generated from their positions is only achieved if the part linked to the stock market meets certain minimum objectives. A scenario that is not always true in all situations. If not, on the contrary, it is sometimes very difficult to achieve these investment goals. In any case, and in case of breach of this requirement, always and in all cases there is a fixed and guaranteed profitability which ranges between 0,25% and 0,75% and is paid at maturity. Whatever happens in the equity markets.
It is extended to other financial assets
This strategy in bank deposits is not only valid in the purchase and sale of shares on the stock market. If not, on the contrary, it extends to other financial assets, even from alternative models. Such is the case of raw materials, precious metals or even as the most innovative element, the reference index for contracting mortgage loans, known as Euribor. Although in these cases, the offer is not as dense as in the stock market. Although it is based more than anything on a system of intentions and not realities, which is how these special deposits are developed that individual clients can subscribe from now on.
It is also necessary to emphasize that these products require more dense terms of permanence in which their strategy can be developed to achieve higher profitability. Among 2 and 4 years in which the money will be immobilized and therefore with greater risks for the domestic economy due to the expenses that will have to be faced in the coming months. Likewise, they cannot be renewed at maturity, as is often the case with the more traditional deposits launched by credit institutions. In any case, it is a new option that investors with a more defensive or conservative profile can avail themselves of in the coming months.
Negotiate it with the bank
In any case, there is always the resource of negotiating the profitability of the tax with the financial institution itself. Although this strategy is only reserved for the bank's best clients: with a solid position in the savings account and without maintaining debit positions in their relations with the entity. So that in this way, they can improve the intermediation margins of these financial products by a few tenths of a percentage point. To the point that they can be subscribed to the measure of our needs and without the need to go to any kind of promotional offer by the issuers of these products intended for individual savings.
Within this general context, it should be noted that through this modality in bank deposits you can choose the amount of the subscription, the term or duration thereof and even the conditions in the contract. That is, it will be much more adjusted to what our needs are at all times. While on the other hand, they have the real possibility that they can be renewed upon completion, even with other conditions in the subscription different from the current ones. As it is a product with its own personality and that therefore differs from the more conventional formats.
With interest rates at 0%
As you may have seen, you have other options so that in the end the balance of your savings account grows year after year without any effort on your part. Although knowing that to overcome 3% levels in profitabilityTheity of these impositions will be a very complex mission for your personal interests. Where in many cases it will depend on the approach you give at the moment to the investment strategy and under very well-defined characteristics in the current offer that credit institutions have been making.
Not with a great variety in the formats, but at least enough to improve the intermediation margins of fixed-term bank deposits. And that is at the end of the day one of your most immediate objectives in a few moments when the price of money is in a negative situation and very unfavorable for contracting this kind of banking products. In what can be considered as one of the actions that you should import from these precise moments in your relationships with the world of money.