Investment in the stock market is carried out through the purchase and sale of shares in the financial equity markets. But at the moment you have a very original strategy to minimize risks and, incidentally, obtain a performance to your savings that surpasses that of traditional banking products. It is materialized through time deposits developed by almost all banking entities. It is a very specific product that allows you to take advantage of a favorable evolution of the financial markets.
One of its most relevant characteristics is that at no time will you be able to generate losses. But on the contrary, you will have a fixed and guaranteed interest every year. It will be very small, but if the conditions of the securities linked to the deposits are met, you can substantially improve these margins. Until get between 3% and 6% approximately profitability. In any case, these deposits have a longer retention period than in the more conventional models. Not surprisingly, they usually go up to 24 or 36 months in which you must have the available capital immobilized.
One of the advantages that these bank designs provide is that they are adapted to very affordable amounts for all households. To the point that you are in a position to contract this kind of banking products for a minimum amount Starting from 5.000 euros. On the other hand, they do not entail commissions or other expenses in their management or maintenance. They only carry very high penalty rates for their early cancellation and that can reach 2% on the amount invested in these deposits. In any case, its mechanics are similar to that of the other time deposits.
Deposits linked to the exchange
The structure of this class of fixed-term deposits is based on the fact that you obtain a minimum profitability and secured by keeping your savings. But if this is the case, it can be enhanced with a favorable evolution of the basket of shares to which this banking product is linked. If this is not achieved, the user will receive the performance under which the deposit has been marketed. As a consequence of these characteristics, you will never get a loss on your income statement. This is one of the reasons why it is intended for a very well defined user profile. Conservative person, who wants to preserve his capital and who does not want to take risks in his operations.
In any case, it is a very special strategy to improve the weak margins offered by the price of money at the moment. With an interest rate that rarely exceeds 0,1% levels. Without the need to expose yourself to fluctuations in financial markets, such as with the direct purchase of shares on the stock market. Although on the contrary, you will not have the opportunity to collect the increases in the price quotation. For this reason, it is not a highly recommended proposition for bullish periods in equity markets. It is about choosing security over profitability while assuming more risks.
Impositions that you can subscribe
The offer that banks offer on this class of deposits is not very wide and they are limited to a few specific proposals. One of these models is represented by the Combined Deposit that Office Direct has been marketing for several years. Its mechanics are very simple to understand since half of the investment is destined to a tax with a term of permanence of 13 months that reports an annual interest of 0,4%. But that can be overcome if the other part of the investment, the one destined to equities, achieves its objectives.
It is not the only deposit that is available in the banking market. Because in effect, the Combined Deposit BBVA Funds is also available, which allocates to an investment fund at least 30% of the total amount initially invested and achieves up to 0,75% per year in the deposit itself. This financial product can be subscribed from very modest amounts for all users, Starting from 500 euros. Unique is another of the entities that have opted for this very particular strategy. So that in this way, depositors can approach the threshold of 1% in the interest rate offered.
Investment diversification
This is the main key in which these banking products are developed. Not in vain, they put the money in percentages that can vary between fixed and variable income. To the extent that they can be equitable, that is, 50% in both models so that the investment towards some of the models contemplated in these term deposits is not decompensated. Although in the end you will be the one who determines the maturity, the amount and other characteristics of these financial products. Within a very meager offer and not at all homogeneous in this kind of special impositions that you have at hand.
On the other hand, you cannot forget that these products can be linked to funds or a basket of shares. Depending on your preferences as a user and other considerations that you should consider from now on. It is a somewhat daring way of combine fixed income with variable income. But with the full guarantee that upon maturity the financial contributions plus the corresponding interest will be recovered. With an increase in profitability with respect to more conventional term deposit models. In what is configured as one of the upward savings products at the moment, although without a clear offer from the banks.
No losses are generated
In all cases, they are products that are exempt from suffering losses as a result of fluctuations in financial assets where the money is invested. This is one of the reasons why they have generated greater appeal among small and medium investors. Although without the opportunity to pick up the intensity of the rises in the equity markets. Not in vain, if you want to obtain juicy capital gains it will be much better that you go directly to the part of the pure investment. To the extent that it is the most profitable option on upward movements in equities.
On the other hand, it is also very important from now on that this special kind of investment can be a perfect solution to save money in the most unfavorable scenarios for the financial markets. Above the stock market operations that carry a greater risk in the protection of your interests as a small and medium saver. The fact that a profitability is a adding value at certain times. To the point that it can even serve as a bridge investment towards another definitive model that will generate a more demanding return.
Advantages of this class of deposits
The term deposits linked to equities provide a series of benefits that you should take into account if you want to subscribe them at some point in your life. Not only from the point of view of remuneration, but from another class of strategies. For example, the ease of its structure to formalize it at any time. From these ideas you will find more than one reason to be interesting for this kind of banking products. As in the following actions that we are going to explain to you below.
- Does not require a special knowledge financial markets, but on the contrary it is a product that is intended for all kinds of user profiles. They are not complex models and you can assimilate them from the first moment.
- Is guaranteed products and therefore you will always get a return on your savings. Whatever happens during the period of permanence to which these term deposits are directed.
- It is formed as a very effective strategy to raise profitability of fixed income right now. To raise the return by a few tenths of a percentage compared to traditional models.
- The lack of expenses is another of the incentives that these deposits have since it will allow you to have a greater liquidity in your checking account when it expires. Something that did not happen with other products intended for savings.
- They are adapted to all kinds of monetary contributions and therefore you can allocate a part of your savings bag to this special kind of investment. Since 5.000 € you can hire a product with these characteristics.
- If you are going to need the money invested in the coming months, it is not the best model you have to hire. Because it has a early cancellation fee which is very demanding. To the point of taking part of the benefits generated since its formalization.
- And finally, you can't forget that in no case will you get double-digit revaluations. Even if the conditions to which the equity investment is linked are met. At best, you'll get 8% return on these trades. Without being able to obtain large returns in the operations carried out.