A deposit for an attractive return

If you are not satisfied with a low savings interest and do not choose to invest, you can put your money in a deposit at an attractive savings interest, but a deposit also has disadvantages. The amount of the savings interest is highly dependent on the market interest rate. In times when savings rates are low, you can increase the return by choosing a savings form (deposit) in which you will secure your money for a certain period. The amount of the savings interest on a deposit depends on the savings interest at the time that you set the agreements with the bank. In addition, the fixed period also weighs heavily. In general, you will receive a higher savings interest on a deposit with a longer duration.

When should I choose a deposit?

That depends on several factors. First, you must be able to miss the money for the specified period. There are often possibilities to withdraw the money in the meantime, but the possibilities are limited. Secondly, you must compare the return against the alternative forms of savings without restrictions. You are not going to secure your money for a few years at a savings interest that is only slightly higher. You also run an interest rate risk. If the savings interest rate rises in the period that you have fixed the money, you could have opted for a regular savings account afterwards.

Who provides the highest savings interest on a deposit?

A deposit is pre-eminently a product that banks often stunt. This is an attractive way to retain customers for a longer period of time. On the internet you can compare savings rates on deposits via various websites. Especially for long-term deposits, it is very important to get the best savings on your savings.

Does a deposit fall under the deposit guarantee scheme?

The same conditions apply to deposits to fall under the conditions of the guarantee scheme. The bank in question must fall under the direct supervision of the Dutch Central Bank. An amount of Ђ 100,000 per account holder is covered by the guarantee scheme. You can increase the guarantee amount by turning it into an "and / or" account.

Deposit not fixed for a very long period

You can achieve a higher return on your deposit by choosing a very long term. In general, however, that is not wise. The savings interest is often only slightly higher than a deposit with a shorter duration. In addition, it is now difficult to estimate to what extent you will need the money in a number of years. By opting for a maximum duration of a few years, you can possibly also benefit from a rising savings interest. On the other hand, you can also miss out on a return compared to a deposit with a longer duration. This is because savings interest rates can also fall sharply.

Don't fix all your savings

A deposit is only suitable for money that you certainly do not need to have during the term. It is therefore wise to secure only part of your savings for a longer period. When taking out a deposit, you must immediately start exploring the possibilities of withdrawing money in the meantime. These conditions differ per bank.

Video: Should You Reinvest Your Maturing FCNR B Deposits? (February 2020).

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