Are Bank Deposits Really Profitable?
Times in which we hid savings in the proverbial sock, putting aside funds for so-called “Rainy day” is long gone. Nowadays, we are trying to somehow invest every money we put aside. We do everything to make the money saved by us start earning. Deposits are one of the ways leading to this goal. Today’s banks are outdoing their offers to customers, offering high interest rates and huge profits. A few years ago, a potential client of such an institution was very enthusiastic about such offers. Today, however, the situation is slightly different. Just a few years ago, the interest rate on deposits was 2 times higher than now. This is closely related to the lowering of interest rates. Bank offers are no longer so attractive, and customers are no longer believing that a bank deposit is indeed a good way to invest wisely in savings, because it ceased to be simply profitable. Nothing could be more wrong.
We refute the myth that you can’t make money on a bank deposit!
There are different types of bank deposits – from one-day or weekly through to several months, ending with one or several years. In the current situation, it is possible to take the risk and say that THE LONG APARTMENT IS LONGER, MORE PROFITABLE. We are still able to earn well on the deposit, but we must be aware that if we expect really measurable profits, we should decide on a minimum for a 6-month deposit. It is the optimum during which the bank is able to invest our financial resources in order to earn on them, and we will achieve it cannot be said that they are not there. The benefits are always there. You only need to carefully analyze everything, think over and, if necessary, even use the advice of a banker specialist to avoid any hasty decisions that we will later regret. LOCATION OF FINANCIAL RESOURCES ON A BANK LOCATION IS SURE A SMARTER DECISION THAN KEEP YOUR MONEY IN SKARPET. Low profit is always better than no profit. Even if we talk about short-term deposits and we do not have more cash to invest. Banks are for people, not people for banks.
To choose the most suitable deposit you need to consider several important factors, including:
- interest – not always high is tantamount to high profits; interest on deposits is given annually, and yet our deposit does not always last so long;
- capitalization – the process of calculating interest for the initial contribution; this factor is more important than interest rate, and often overlooked by the client; our final profit depends mainly on the amount of capitalization during the deposit;
- common sense and customer awareness as well as an analysis of the deposits offered on the market – no one will make the right decision without it.