When do we get to choose a bank deposit, we are making the difference between earning a greater or lesser amount of money based on interest.
Maybe at first glance bank deposits do not seem complicated products and you believe that any deposit can give you benefits, but if you do not know how to choose it and know the different factors that exist to earn more, such as profitability in installments give you or the commissions they charge you, the payments can be much more expensive in the long run.
What is called a fixed term deposit
Time deposits are bank savings deposits perfect for conservative people They do not want to risk their money with any investment. This type of deposit consists of depositing an amount of money X in an entity with a certain type of plan so that over time, that amount set in said entity can be recovered plus interest.
These are not the only deposits that exist, since we can also enjoy the benefits of combined deposits or referenced deposits but these are a bit more complete and less popular.
What are the advantages of bank deposits
- Fixed-term bank deposits are backed and guaranteed by the deposit guarantee fund. This fund covers up to 100.000 euros per holder.
- It gives you the possibility to recover 100% of the investment at maturity.
- It has a fixed profitability in advanceThis tells us that from the beginning we already know what we are going to earn when we get our money back.
- It has many benefits (although this also depends on the entity and the deposit) so that you can find very advantageous products with early cancellation or a penalty on the interest rate.
What to consider when choosing a deposit type
In order to choose the type of deposit you must take into account several factors that we are going to detail below:
You must know the type of deposit
This ranges from single tanks to double tanks, which are the most complex. The deposits are very different from each other, so to measure the different deposits you must know very well all the factors that influence it. One of the easiest bank deposits are those that are designed for a fixed term since we can never lose with them. These types of deposits are given a type of profitability that does not vary, since it does not depend on any external factor.
The profitability of deposits
Profitability is one of the first factors that almost everyone looks at when choosing one deposit or another. However, you have to know how to interpret it very well.
Most entities give you benefits between 4% at 12 months or 5% at 18 months. In these cases, most people would go for the second option since it gives a higher%, however the best option is the first because it gives a higher remuneration in less time.
To know for sure which one we should choose, we must look at the Equivalent Annual Rate or APR. If we look again at the two previous offers, the first would have an APR of 4 and the second, which gives us a higher%, would have an APR of 3,3 per year.
The terms of the deposit
On deadlines, you should always choose the deadlines carefully that will be paid according to our needs (in this case we must see if we are going to use that money in the short term). You must also take into account what is the evolution of the market (since you have to see if the currency is stable in the long term or not) and see the returns that the deposit itself gives us.
Deposit liquidity
This tells us about the money availability that we can have and also constitutes one of the most important factors when it comes to choosing a type of deposit. Here, we can find several options, one of them is the deposits without penalties that occur after early cancellations, that is, deposits that are given but give you the possibility of recovering your money at any time and deposits with penalty on interest, which although they try to apply a lower interest rate, charge some type of interest. This type of deposit is the most popular.
Finally, there are the deposits that do not allow them to be canceled in advance that were very used deposits in the past, but nowadays the entities have stopped using them.
Liquidation in interest
In this case, the people who are going to hire a deposit may think that it is something not very relevant but it is not. You have to see very well what is the way in which you should share monthly, quarterly, annually or at maturity. In addition, you should ask what will be the variations in that deposit in terms of the APR and the real return.
Keep in mind that the faster the interest settlement, the more the APR will inflate. The best option is when the TIN and the APR are the same.
The minimum deposit amount
In this case, you must take into account what is the minimum amount because in case you ask for more money than we want to invest, it is time to look for another deposit.
Linking deposits
Although many of the banks offer great returns as regards the relationship with them, that is, direct debit of payroll or contracting some insurance. It may be that at first glance, we are always fleeing to the bonding of the banks or the contracting of insurance, since it is usually for a long time, however, when it comes to sitting and seeing as professionals what is the profitability that it really gives usBetween gifts and discounts, it is much more profitable to do so than to find another bank that does not ask us for that type of loyalty.
The commissions in the current account that is linked
When we are going to contract a bank deposit, we need to open a bank account in which it may have high interest rates, although the normal thing would be for this type of account to be free of commissions, but normally it comes with hidden commissions, which is considered by the bank of Spain as a lousy practice by entities, which turn good products into lousy products.
In case we open a warehouse abroad
During the past year, the profitability of the deposits that have been offered by Spanish banks are very low, which has made many people want to invest in deposits abroad. In addition, it has managed to reach 5% in world investments.
Can a bank deposit be opened for a non-resident person?
In most banks, people who are going to make a bank deposit are asked for an identification by means of which it can be seen that the person lives in the country and has a postal identification.
Who takes care of your money in bank deposits
In this type of case, it is not only necessary to see what the guarantee fund within the country, but backs our money outside of it.
In many cases, even if the account has been opened in a country, it is not covered by the funds of that country.
How much a deposit costs between countries
Most banks take care of everything for an extra cost of 30 euros, although this depends a lot on the bank.
In Spain: To find out what taxes are in Spain and what agreements foreign deposits have with the country, you must go directly to your bank so that a professional can advise you on that particular bank. However, the law stipulates that:
People who want to opt for a bank deposit, since last year must pay 20% of their salary to the farm. However, depending on the country in which you want to open the deposits or send the deposit money, this changes. Countries like Germany, Cyprus or Andorra charge 0% and other places like Switzerland charge 35% but give many benefits.
If we want to invest from Spain to the United States, this will take 15% of the total, but if the money never leaves Spain we will only have to pay 5%.
Botton line
We hope to have clarified your doubts regarding everything related to Bank deposits.
How could you see, there are many types of bank deposits that should be adapted to what you are looking for. Knowing the details of the deposits will make you make the best decision and above all, not get carried away by what at first seems the best option but is not. In addition, now you know that you can make deposits abroad in the currency and what is the commission that will be charged for this process.