If what you are thinking is that structured deposits are like the traditional ones that you had contracted until now, you have certainly been wrong. Not surprisingly, they have substantial differences as they constitute completely different investment models. To the point that they have very defined characteristics that make them pass for products with authentic investment personality. In any case, it will be another of the alternatives you have to make the savings profitable from now on.
If structured deposits are distinguished by something, it is because you do not commit the invested capital as long as you respect the deadlines to which these financial products are directed. Not surprisingly, each of them has a expiration date, whatever the financial asset of which it is composed. With different periods so that they can be adapted to any profile of small and medium investor. From the most aggressive to the most defensive, with no limitations of any kind in this regard, beyond the conditions of the structured deposits themselves.
You must take into account that as long as you keep your investment during the agreed period you will not have any problem to keep all the capital invested. That is, 100% of the monetary contributions that you have made in this financial product. The problem will arise if you do not respect these deadlines, and in which case you may lose some of the money invested. As if it were an investment in the equity markets. In any case, you can opt for a term of between 1 to 10 years. Very flexible and so you can meet your financial needs.
Structured: partial or total contributions
On the contrary, if you need part or all of the investment, that is when the first problems may arise. In the sense that if you need to recover your investment, partially or totallyBefore the end of the term, you can do them through the monthly liquidity windows that these financial products contemplate. But in this specific case, it cannot guarantee the entire investment. To the point that you can lose some money in the operation.
It is a banking product that you can hire from just 1.000 euros. With a specific hiring period: once the subscription term or the total amount committed has ended, it is not possible to hire them again. As you can see, it is not an investment model at all demanding and in this sense it can be assimilated with the most conventional deposits on the market. That is, as if it were another term tax, with its consequent differences.
How are they referenced?
Structured deposits do not have to be tied to fixed income, as it seems the most logical. Not even the stock markets. If not, on the contrary, they can come from any financial asset, such as the European benchmark, known as Euribor. Where they have a subscription period that is very rigorous and to the point that if you exceed the dates you will not be able to subscribe them under any aspect. Not like in traditional deposits that you can formalize it at the moment when you consider that it is more convenient to close the operation.
Its hiring mechanics is very simple since there are three business days for you to have one retention in the associated account to the deposit for the requested amount. But if for any reason there is not enough balance, the application will be canceled. This is a small difference that distinguishes them from other financial products. Beyond its technical approaches that correspond to another completely different section and that will be analyzed in other articles. On the other hand, there is also a date that will serve to fix the prices and that will be the ones that will determine the real profitability of structured deposits.
Real profitability of these deposits
You may already be wondering what is the interest rate that you will get from structured deposits. Well, it will be somewhat more competitive than in the other impositions. At this time it can be obtained between 0,20% and 0,90%, depending on the chosen model. Where, this innovative product will pay the product will pay a coupon for its corresponding percentage of profitability. A novelty compared to other ways of making the accumulated capital profitable.
On the other hand, you cannot forget from now on that these very special deposits are characterized by being more complex than the rest. In addition, they are not interesting for depositors because of the such high deadlines with which they are marketed. To the point that another class of products intended for savings is preferred. Not surprisingly, the increase in profitability is not very striking and only raises it by a few tenths of a percentage point. As one of the main drawbacks to underwriting structured deposits.
Bindings of the impositions
There are as many linkages in these products as there are financial assets and thus, and by way of example, Banco Santander structured in euros is linked to the securities of Vodafone, Eon, Eni and Orange. BBVA, for its part, contemplates in its savings offer a structured reference to Repsol shares. In any case, if the user wishes, he can also refer to this saving model to other currencies, especially with the US dollar. Although its result will vary depending on its price in the financial markets, with greater volatility in the expectations it offers at the moment.
On the other hand, there are several banking entities that have decided to bet on improving profitability with deposits linked to stocks, indices or mutual funds. It is an indirect way to position yourself in equities without taking as many risks. Because the negative positions in these financial assets are minimized and to the point that the losses are not as high as can happen with the aforementioned products. In this sense, it is a somewhat special mix between fixed income and classic investment models.
Characteristics of structured
The contributions of structured deposits are very well defined and, first of all, they offer a slightly higher interest rate, which ranges between 0,20% and 0,70% nominal. However, its final amount depends on the percentage of investment distribution and from the fund to investment asset chosen by the user. In another vein, the fact that one of the drawbacks of this type of product is not knowing the final profitability that we will obtain upon expiration cannot go unnoticed. Unlike traditional deposits in which the profitability to be obtained is known from the beginning.
Where if there is a clear coincidence, it is in the security that your hiring provides. Because in effect, it is a safe product because they are regulated by the Bank of Spain and by the Deposit Guarantee Fund. Guaranteeing up to 100.000 euros by fund and title any incident that may happen with the issuer. Whatever the nature of the same and the entity where it has been hired. It cannot be forgotten that they are regulated by the National Securities Market Commission (CNMV), offering greater protection to the depositor.
What are its disadvantages?
Either way, your subscription carries a series of weaknesses that you should take into account to see if it is worth it or not to formalize them. Among which are the following that we expose you below:
- Structured deposits operate in secondary markets and as a consequence you will have more problems to undo positions at the time you want.
- Higher risk factors are present, such as those related to bank credit and that they can create some other problem in the investment.
- The markets where structured companies operate are characterized by the fact that they are conspicuous by an absence in the external supervision. A factor that limits the security offered by this financial product.
- They are at a certain disadvantage with respect to traditional assets because the secondary markets in which to operate generate a less liquidity. This is a very important factor in investing your savings in a financial product.
- And finally, that maybe does not compensate your hiring for the profitability they offer at the moment and that can make you opt for other less complex savings models and without so many risks.
On the contrary, structured deposits allow you to make an exposure to various classes of financial assets, some of which you had never considered opening positions to make your capital profitable. On the other hand, it maintains a prudent satisfaction when measuring its profitability and the risks that are generated in its operations. Also the fact that an investment can be made to suit you as a result of its most important characteristics. Without forgetting, of course, that they can help you improve performance if expectations are met in the end. With the recovery of the investment at maturity, which is at the end of the day what it is all about.