Deposits and products linked to equities are some of the formulas that the majority of insurers and credit institutions have chosen to capture their customers' savings. Offering them a profitability between 2% and 5% on average, for minimum quantities Starting from 5.000 euros. Although you can always find a product of these characteristics in this sector with less demanding contributions, around 1.000 euros. In any of the cases, it is an alternative that you have at the moment due to the weakness of the products intended for private savings.
Within this general context, this class of fixed-term bank deposits can be a solution to the lack of expectations and even profitability in the equity markets. Where the forecasts are not positive for this current year, but on the contrary, they move with depreciations that can take the Ibex 35, for example, to levels around 7.000 or 7.500 points. An additional reason to lean towards the impositions linked to the equity markets. They are accessible to all saver profiles and are very easy to formalize.
On the other hand, you have to see that almost all banks have a product of these characteristics in their specific offer. With different formats and linked to various financial assets on the stock market. Of course, you have a series of proposals that you can formalize from any kind of investment approach from bank deposits. Beyond how financial assets may evolve in the coming months and that of course may bring some other surprises for investors.
Taxes linked to the stock market
These kinds of products allow you to invest in the stock market but without taking the risks derived from the purchase and sale of shares on the stock market. Among other reasons because you will not have the possible losses of these operations. If not, on the contrary, you will not assume any risk but you will only not achieve the profitability announced for bank deposits linked to the stock market. This class of products can have a profitability close to 5% if the investment objectives are met. If this were not the case, you would have to settle for a minimum interest rate that would be very low, around 0,10% and in line with the other more traditional deposits.
While on the other hand, bank deposits linked to the stock market are characterized by they do not have any kind of commissions nor other expenses in its management or maintenance. That is, it will not cost you a single euro and all the interest will go to your savings account in full. Through quarterly, semi-annual or annual reimbursements, depending on the characteristics of the contracted product. Another aspect that must be taken into account is that this performance is subject to the corresponding tax withholdings as in other models with similar characteristics.
More demanding terms of stay
On the other hand, bank deposits linked to the stock market require longer terms and can reach up to 3 or 4 years. As well as without the possibility of canceling them in advance, as occurs with other fixed-term deposits. Where, it is necessary to mention that it is necessary to have the money immobilized for a long time, as the main disadvantage in its hiring. To the point that it can subtract a level of liquidity from its holders. Because in effect, this class of fixed-term bank deposits does not have shorter terms, as is the case with other deposits that are not linked to investment in equities or any other class of financial assets.
In any case, it is a very special way of creating a stable savings exchange in the medium and long term. Although with a very meager profitability if the conditions in the investment in the stock market that allow a higher interest are not met. On the other hand, the interest is received by its holders at the time of expiration of the product and that will immediately go to the savings account of its holders. Whatever the amount they received at this time of the process in the formalization of this special tax that savers have in the current bank offer.
Difficult conditions to meet
The great disadvantage of this banking product is that in order to obtain the maximum interest the investment in the stock market must meet minimum objectives and that it is not fulfilled in all cases. In some cases they are practically unfeasible plans that from the beginning it is known that they will not be able to be achieved and is one of the reasons why they lose interest among small and medium savers. Because then they will have to settle for the minimum guaranteed profitability and that rarely exceeds 0,2% levels. In line with other savings products that provide very similar characteristics to this one.
Nor can it be forgotten that this class of fixed-term deposits is one of the few strategies that small and medium-sized savers can develop to improve the result in contracting this class of financial products. Where the best they can offer is your security, and whatever happens in the stock market, a minimum return will always be charged for the savings deposited. In other words, the money will always be guaranteed even in the worst-case scenario for equity markets. As one of its main hallmarks before formalizing it in our usual bank.
Linking to the stock market
Their dependence on the equity markets is generally materialized by a basket of shares of the securities of the Spanish or European indices. They are usually the most representative, such as Iberdrola, Santander, BBVA, Inditex or Ferrovial. In other words, very stable companies with very high capitalization that give strength to the portfolio of securities integrated into deposits of these characteristics. Either way, what you will never find will be with second or third row values, and above all of a speculative nature. Simply because they have no place in this class of banking products since it does not make sense to include them in these baskets.
While on the other hand, these impositions can also be linked to other financial assets within equities. One of the most common are investment funds through two or three models that can encourage or increase the profitability of these deposits. As in precise metals, raw materials or other financial assets of special relevance. Among those that stand out for their importance are oil and gold, which are currently two of the most bullish assets in the financial markets. To the point that they can improve the profitability of these time deposits.
Is it worth subscribing to them?
This is the question you should ask before signing the contract at your bank. It is true that its purpose is to improve their profitability, but it is no less true that very seldom successful this strategy in investment. From this point of view, you will have no choice but to be a little cautious in making decisions because it will be a long time that you will be without that money that you have deposited. There are other investment strategies that are better and more satisfactory for your interests at the moment. Without having to resort directly to buying and selling shares on the stock market. Because what it is about at the end of the day is to make the money profitable over other series of considerations.
It is also necessary to emphasize that they are products that they are going to demand greater amounts of money from you and to see to what extent it pays you to carry out this kind of operation. Especially when in the market you have a wide range of products for savings and investment. It may be that in the end you will reach the definitive conclusion that their hiring is not profitable in the defense of your interests. Although it provides you with a very optimal level of security and you cannot lose a single euro. But what is involved in the end is to make the savings profitable with certain guarantees in the levels of remuneration.
While on the other hand, you cannot forget from now on that bank deposits linked to equity markets have lost their meaning a bit. Before the appearance of new financial products of all kinds in their nature and that you can subscribe very easily. With greater guarantees that in the end you will have more money in your checking or savings account. Not only linked to equities, but also to fixed income and also from alternative formats as an investment option. In any case, it will be a decision that only you will have to make based on the profile you present as a small and medium investor. At times when investing in the stock market can be an added problem.