Introduction
Once you have managed to save some money, whether we are talking about a few dollars or your lifetime savings, your main objective would be to increase its value, or at least to conserve it. For this, a solution would be to choose the banking savings options offered by the different financial institutions. However, here is the problem. What is the most adequate model of saving based on my necessities?
History
The banking savings products gamma is diverse now. Besides the classical deposits, you can access some financial instruments with a progressive interest, or financial instruments that combine saving with an investment on the capital market. Here are the most common and the most profitable banking savings options.
Features
Simple deposits
For the simple deposit, the bank offers the greatest interest. The money is immobilized in the bank for the respective period, from one week to 36 months or even more. However, the term deposit has the disadvantage that you will lose the interest in case you decide to withdraw the money earlier, and you will not receive any kind of interest, or you will only receive the simple interest that is significantly smaller. Another disadvantage would be the taxes you need to pay to your government, as incomes resulted from interests are considered as taxable by the authorities.
Progressive interest deposits
On the market, there is also the solution of progressive deposits. Usually, the interest for this kind of deposit grows with a few points from one month to the other. Usually, you can access those deposits for periods of 6 months to 1 year, and if you need the money, you can withdraw it, and you will not pay penalties.
The banking savings accounts
The savings accounts are products allowing you to deposit and withdraw cash, and they are not taxable by the state. The disadvantage is that the interest is significantly smaller than the one of the simple deposits. However, if you are patient enough to check the market, you will discover banking savings packages with a great interest. The majority of banks ask for a minimum sum to be deposited in the account.
Deposits with an investment component
The deposits with an investment component are considered the most innovative options. A part of the money is placed in term deposits, and the other part is invested in a fund. The deposit has some great interests, and the incomes brought by the fund could be even more significant.
Tips and comments
The interests of some deposits could be negotiated with the bank, but it depends on the relationship you had with the bank and on the sum you want to invest. The bank usually offers greater interest for larger sums, especially if you are willing to place the money in a deposit on a long term. The same option is offered for companies. In any case, banking savings are the perfect alternative in terms of safety and incomes, especially considering the delicate financial situations that requires you to have some money saved at any given moment.
