Hire a deposit or invest: what to choose for my savings

When you have some savings in a non-remunerated account, purchasing power is lost due to the effect of inflation. That is why, depending on what plans with th

Hire a deposit or invest: what to choose for my savings

When you have some savings in a non-remunerated account, purchasing power is lost due to the effect of inflation. That is why, depending on what plans with that money in the future, it is possible to choose the deposit in which to place that money or an investment product to make those savings. Experts from the financial comparator HelpmyCash.com explain the best option, attending to each personal case.

If you choose the option to profit the money in a simple way, there are two paths that can be followed: hire a deposit or invest. Of course, if it is the first time it is invested and there is no previous experience, it is most advisable to look for a simple investment product, such as investment funds, indexed investment funds, actions, etc.

The National Securities Market Commission (CNMV) classifies the products in complexes or non-complexes, being more recommended for novice investors seconds. Non-complex investment products are those that meet four characteristics. The first is that they allow a refund and prices are public, that is, they are liquid and their price can be known. The second is that the maximum money that can be lost would be the capital invested. The third, that information about these products is easily accessible and, the fourth, which can not be defined as derivatives.

To know if the convenient is a deposit, it is necessary to think about the objective that is for money. If the main thing is not risking an euro of that money and getting some profitability or you do not have any experience with investment products nor interest in learning or the goal is to be able to withdraw money within a more or less short period (by Example a few months or a year), the option that better would fit would be the deposit. With it, the profitability that is going to be obtained and the time period in which money can not be available from beginning, so that all conditions are established from the beginning. In addition, money is guaranteed.

Currently, in Spain, options with good remuneration by banks are few, but Internet allows hiring fixed deadlines from other European banks. The RAISIN online platform allows you to contract from Spain some of the best European deposits. All are guaranteed by the Warranty Fund of each country, which covers up to 100,000 euros per customer and bank.

On the other hand, if the saver has knowledge in terms of investment or interest in learning and, in addition, he is willing to take risks to obtain a greater profitability, with the possibility of ending losing money, you can bet on an investment product. Moreover if the money is not needed in the short term, to take advantage of the upward trend of long-term markets.

Currently, there are numerous possibilities to invest, either in investment funds, in stock, in ETF, etc., but due to the low commissions that are affected, indexed investment funds can be especially attractive, a type of investment fund that It works by replicating an index (the IBEX 35, for example), so it is intended to obtain the same profitability as it is. In addition, as explained by HelpmyCash.com experts, they have lower commissions than active management funds.

There are entities that give the option to hire this type of investment funds indexed in the form of investment portfolios, that is, hiring a set of indexed funds and, in addition to advising to verify which of these portfolios is more convenient according to the risk profile . They are the entities called Robo Advisors or automated investment managers, who ask questions to the client about their financial situation and their risk tolerance and, depending on that, recommend a set of fund indexed or others. Example of this are Inbestme, Finizens and Indexa Capital, which also allow investing from about 1,000 euros, in the case of INBESTME and Finizens, and 3,000 in the case of Indexa Capital.

Of course, there are some key points that must be followed to start investing. First, you have to always understand the product that is contracted. Second, it must be very clear about the deposit period that is signed or the ideal term for the investment that is being chosen. On the other hand, you have to know very well the profitability that is going to be obtained with the deposit and risks if you opt for an investment product. In addition, in the case of investment products, we must not forget that past profitability does not guarantee a future, they emphasize from HelpmyCash.com.

With these guidelines and informed well to make the right decisions, the step of having the money in a savings account that has no profitability to have it in a deposit or in an investment product will be a positive change that will notice the money.

Updated Date: 03 September 2021, 13:43

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