Key tips for choosing the best deposit with high returns
Although lifelong entities rarely offer profitable savings products, there are some with attractive promotions, you just have to know how to choose the most profitable one.
Longtime banks rarely offer profitable savings products anymore. In general, large banks are not interested in paying for their clients' deposits; They are focused on increasing your profitability. And how do they get it? For example, trying to increase the loyalty of your clients and increasing the commissions of your accounts.
Luckily, there are banks that seek to grow and, for this, they offer attractive promotions to attract the money of new savers. Financial buyer experts HelpMyCash.com give us five tips for locating the time deposits with the highest returns.
1- LOOK AT THE 'ONLINE' OFFER
If you want to look for more profitability for savings, it is on the internet where we will find the best offer in time deposits. For example, in Raisin's online savings product catalog, it is easy to find attractive returns, as well as a wide variety of terms. The platform allows you to contract up to 70 deposits and highly profitable savings accounts, being able to get a maximum interest of 1.41% APR.
2- TAKE INTO ACCOUNT THE APR AND THE TERM
The equivalent annual rate, what we know as APR, is a good parameter to compare between one offer and another. However, you also have to focus on other factors such as the deadline.
For example, a three-month deposit at 1.40% APR is attractive, but a one-year deposit at 1% APR will earn us more in profits. If we decided to invest 50,000 euros in the three-month deposit, we would obtain a profit of 175 euros gross at the end of the term, while with the one-year deposit the returns would amount to 500 euros gross.
One possibility is to enjoy the high profitability of the three-month deposit and, once the term has elapsed, move the money to the one-year deposit and continue adding interest. However, we risk that the one-year offer will disappear by the time our three-month deposit has expired.
3- CHECK ITS FLEXIBILITY
It is interesting to contract a deposit that can be canceled early. Many already offer early repayment, making it possible to cancel the contract and access the savings at any time. However, this decision may cost us the interest generated to date. Generally, the bank returns the amount invested, but without remuneration.
4- EARN AN EXTRA WITH THE OFFERS
Right now it is possible to earn up to 125 euros as a gift just for opening a deposit as a new customer at Raisin. On the one hand, the platform offers a welcome gift of up to 100 euros, cumulative to the 25 euros that it gives away in collaboration with HelpMyCash to new customers who invest at least 1,000 euros in one of the deposits or accounts of the platform and enter the code HMC25 during the registration process. Offer ends November 30.
5- DON'T EXPECT TOO MUCH
If we find an attractive profitability and we take too long to contract the product, it could be expensive, since the APR of these products can fluctuate according to the needs of the bank.
The most advisable thing is to close the contract as soon as possible. For example, the deposits of the Banca Sistema of the Raisin platform will see their APR reduced on November 27 , so that clients who have contracted one of their deposits before that date will earn considerably more than those who decide later.
