One of the ways to stabilize savings for people who do not want to invest in the equity markets is through fixed-term bank deposits. It is a product aimed at savings that guarantees a fixed and guaranteed return every year. Although with very weak interests that move in a fork that ranges from 0,10% to 1%. As a result of the cheaper price of money in the euro zone and that led to intermediation margins not very satisfactory for the interests of investors.
Well, this financial product is very easy to understand by all user profiles. Being able to contract from very affordable amounts for all households from contributions from 100 euros. With the collection of interest at maturity and without negative returns at any time as a result of the different scenarios in the international economy.
While on the other hand, it is necessary to indicate that bank deposits can see their profitability improve through various strategies to achieve these objectives. They range from a change in term of stay to get involved with greater loyalty with the banking entities in charge of marketing this banking product. As for example, the ones that we are going to explain to you from now on. Where you can get more than one idea to make the savings profitable in the best possible way.
Impositions: lengthen deadlines
The simplest strategy to achieve these objectives is to extend the terms of permanence. This way you can get a few tenths more on the initial rates. Although with the great inconvenience that you will have to have the money parked for an excessive period of time. With deadlines that go from two to four years. It is an investment model that is completely free of commissions and other expenses in its management and maintenance. Unlike equity derivatives, such as buying and selling shares on the stock market.
On the other hand, this strategy helps you in your intention to create a stable and permanent savings bag for the medium and long term. So that you can make profitable savings in a very stable and above all safe way. Whatever happens in the equity markets. It is definitely a risk-free investment in your positions. In particular, in scenarios of certain instability in financial markets, which is when the least desirable situations for small and medium investors occur.
Take advantage of offers from banks
There is no doubt that this investment strategy is one of the most successful in achieving these goals. Not surprisingly, it is very common for banks to launch different promotions in the marketing of these term deposits. Because they improve profitability up to 2% levels. In other words, with a wider difference in terms of the remuneration offered by these banking products. Although on the other hand, they require greater customer loyalty.
This class of bank deposits are characterized by the fact that they are present in very short terms of permanence. Around 3 and 6 months and that therefore does not allow an optimization of this product. Just as it does not remunerate all the money, but to a rather limited balance and which is also restricted to new capital or clients of other financial institutions. While on the other hand, they are products that are not renewable, but on the contrary, they end when they expire. Not in vain, in the offer of the banking entities there are not many possibilities of extending the terms of permanence.
Link it to another financial asset
Of course, one of the most aggressive strategies is to tie the deposit to a financial asset derived from the equity markets. The fact that this financial product allows ensure minimum profitability no matter what happens in the financial environment. Where an increase in the interest rate of close to four percentage points can be achieved, provided that minimum conditions are met by the assets linked to these fixed-term deposits.
It must be emphasized that these financial assets can be of a diverse nature. For example, shares in the stock market, investment funds, raw materials or even the euro itself. On the other hand, it must be clarified that these deposits have a longer term of permanence than in other more conventional deposits. In a period that usually range between 3 and 4 years. And through much more demanding monetary contributions. Generally from 10.000 euros and without any kind of commissions or other expenses in its management or maintenance.
Hired online
This is another very simple solution to improve the performance of these banking products. Although they are under much more modest intermediation margins than in the other strategies that we have proposed. But as the advantage that you can formalize them comfortably from home or another place and what is more important at any time of the day even on weekends. So that in this way you can improve the balance of your savings account without much effort on your part. By means of impositions that must be considered as traditional and without any link to other financial assets.
While on the other hand, you can have a wide flexibility regarding your terms of stay. From just a few days to several years depending on your needs in the domestic economy. Where above all it provides total security regarding the integrity of your monetary contributions at all times and whatever happens in the economy. While they are also a very receptive banking product to get intermediation margins for your personal interests.
Domicile payroll
Another alternative is something as simple as it is fruitful, such as putting the payroll or regular income from self-employed workers in the bank. This action is rewarded in fixed-term bank deposits since they allow substantially improve the interest rate of this product for savings. Although it is necessary to maintain greater loyalty with financial institutions. So that in this way, the conditions in the contracting of the product itself can be improved. So that in this way, its holders can see a greater profit margin in their savings account balance.
On the other hand, it is no less important to emphasize the fact that direct debit of the payroll is an additional tool to obtain other sales in the contracting of banking products. Among them, consumer loans, pension plans or savings programs, among some of the most relevant of the current banking offer. With significant bonuses or discounts on the original intermediation margins that are imposed by credit institutions. An incentive for the main banking clients to be interested in this strategy in the management of this service.
Claims in the management
On the other hand, it should also be borne in mind that banks develop their best strategies to demonstrate which is the best deposit and the one that offers higher profitability. It is the claim that they use to capture the money of the clients of the competition. At first glance, it may be a relief for users to see that they can get more benefit from their deposited capital. But it is very convenient to analyze these promotions to see if it is really worth changing banks only for a product that has a life of between 6 and 12 months at most. Because not in all cases will it be necessary to accept these savings proposals.
For example, a traditional monthly tax of 1,00% will provide only 10 euros. It will be necessary to check if it is worth opting for these formats for a prize so small regarding the remuneration given to the bank user. Because in fact, in many of the situations the answer will be clearly negative in reference to the defense of our interests as a bank user. Another very different thing is that these financial products can offer a higher interest rate, up to 2%, which would represent a monthly payment for this same amount that is much more satisfactory for everyone.
Because we cannot forget under any circumstances that these savings formats are aimed at new clients or money from other entities. Being in any way, one of the most profitable options that are available to users to increase the profitability of these products. Although with the great inconvenience that its term of permanence is very limited, between 1 and 6 months, which generates that the profits obtained in these subscription periods are not at all spectacular despite the fact that its maximum limit is close to 100.000 euros. In a new alternative they offer this kind of imposition.