Faced with a foreseeable decline in the international equity markets, one of the options for directing savings is in fixed-term bank deposits. Despite the profitability they offer at the moment, it does not satisfy the needs of small and medium savers. At this time, an average 12-month taxation in the term of permanence has a interest around 0,13%, according to the latest data provided by the Bank of Spain. As a consequence of the price of money and that it is at 0% in the euro zone and in any case at historical lows.
But the fact that the stock market can go down from now on can make investors turn their views towards this banking product. In any case, Spanish equities traded a total of 49.039,8 millones de euros in April. That is, 41,4% more than the previous month, despite having fewer business sessions in the market, being in any case the best month since last October. In year-on-year terms, there was a 25,4% drop and where the number of negotiations was 2,9 million, 7% less than in March and 0,8% less than in the same month of the previous year.
In this general context, in the second half of the year it may be time to contract fixed-term bank deposits. Because despite its low interest rate there are different strategies with which we can increase its performance. To the point of raising your interest rate by more than one percentage point. So that in this way, it is more profitable to have the money saved in a product of these characteristics. Where security prevails over other much more aggressive considerations from the investment point of view.
Boost performance: deals
The simplest strategy to apply to improve the performance of fixed-term bank deposits is to take advantage of the offers and promotions that financial institutions have been doing for a few months. They offer more suggestive savings models to be hired and that can exceed the 1% or 2% level. In most cases it will be necessary to direct debit the payroll or regular income to benefit from its underwriting conditions. These are offers that are intended for new customers and in all cases cannot be renewed upon expiration. By no means.
This class of fixed-term bank deposits has a period of permanence that ranges from 6 to 12 months and with a maximum amount to be paid that reaches approximately 50.000 euros. To finally get the money to generate a return through this unique investment strategy. The imposition of these characteristics that offers the best interest is Bankinter, which reaches levels of 5%, although with the aforementioned conditions.
Link it to a financial asset
Another strategy that can be used from now on is to tie the tax to some other financial asset. It does not necessarily have to be stocks, but also raw materials, precious metals or even the benchmark index to which more than 90% of the mortgages contracted by Spaniards are linked. If the objectives are achieved in its quotation, profitability levels above 5% can be achieved. And if this were not the case, there would always be a fixed and guaranteed return every year. Around 0,50% and whatever happens in the financial markets.
This class of products is being imposed in the preferences of small and medium investors. By showing that it is a safe way to make your invested capital profitable and without involving any risk in the exposure of your capital. Because at no time will they be able to lose part of it since there is a minimal profitability from the start. With the advantage that fixed-term bank deposits can be linked to any financial asset. From the most traditional to the most innovative and with practically no restrictions in the current banking offer.
Increase the terms of permanence
On the other hand, you can always resort to lengthening the terms in this kind of savings products. To get to a period 36 or 48 months where the profitability will be slightly higher. There is not much that can be improved regarding the monetary return of these products, but it will at least be a few tenths of a percentage compared to the more traditional models. Also through an interest that will be guaranteed from the beginning. No commissions or other expenses in its management or maintenance.
To the point that it may be another alternative to equity markets right now. With formats considered as traditional since there is no kind of link with other financial products or assets. Not in vain, it corresponds to the deposits of a lifetime and that our parents or grandparents hired. Where you can access your offer through the models that are marketed via Internet. Comfortably from home and they can even improve their profitability by a few tenths of a percentage compared to contracts through bank branches or by telephone.
Opt for digital banking offers
There is no doubt that digital banking is the one that currently offers the best intermediation margins in fixed-term bank deposits. Through a series of proposals that can be very profitable for our personal interests. To achieve levels of remuneration that can be approach 2% or 3% over traditional formats. This investment strategy is focused so that we can contract the impositions from any technological device: mobile phones, tablets or other tools with similar characteristics.
While on the other hand, it gives us the opportunity to improve our relationships with banks of these characteristics. By getting bonuses in contracting other financial products or even get credit or debit cards completely free. As in another series of procedures carried out with these digital banks. In any of the cases, the formalization of fixed-term bank deposits always takes place through technological channels, unlike traditional banking. As one of his main hallmarks at the moment.
Offer for new customers
There is another class of fixed-term bank deposits that are destined to new money or new clients and that allow obtaining a return close to 3%. However, they have the disadvantage that they have very short residence times. Between 3 and 6 months approximately and are only valid for sections in the balances not excessively demanding and that penalize the demand for this financial product. Beyond another series of technical considerations and that will be the subject of another section in a future article.
This class of fixed-term bank deposits can be very interesting when you are going to change bank since you can take advantage of these special offers or promotions. Its objective is the desire of banks to capture the clientele of the competition Above all, and for this, they offer very aggressive offers and with very attractive interests until their expiration date. On the other hand, you cannot forget that these savings models do not entail any type of expense and the profitability will go directly to your savings account.
Online hiring
These formats in fixed-term bank deposits also mean an improvement in the return on deposited savings. Although under a not very striking amount. But with the advantage that you can hire it at any time of day. Even at night or on weekends and for the amount you want. So that in this way, the money saved can be made profitable in a more optimal way than from traditional models. In what constitutes an upward trend among the habits of Spanish users.
On the other hand, this contracting system allows you to compare the various offers offered by banks and choose the format that better fits your profile as a small and medium saver. Both in terms of terms and the amount you want to subscribe. While on the other hand, it gives you the opportunity to choose between several international currencies. Among those that stand out the euro, US dollar, Japanese yen or Swiss franc among some of the most relevant in the market.
In short, you have at hand to select different investment strategies that are intended to improve your profitability on fixed-term bank deposits from now on. Not surprisingly, it is at the end of the day what is involved when signing a class of financial products such as these so traditional. In what constitutes an upward trend among the habits of Spanish users.