We all know that in today’s market, it is difficult to find fixed rate deposits with higher return than the 4% APR. But it is also true that the conditions of employment of these deposits are increasingly star twisted, longer terms and higher minimum capital, the latest trend, early settlement offer in exchange for some reduction in profitability.
As advised HelpMyCash, we must have a clear idea of departure: the best deposit banks, eager for liquidity, there will always be interested in retaining our money for the longest period possible, both in regard to as investment interest. All this translates into a number of practices with which we find in many entities:
· Cancellable deposits: from the moment of signing the contract and until the agreed time we will have no claim on our money. At best we can hope for is that the bank will offer a loan to deposit as collateral. Tip: hire only if you are very sure of not needing the money or the time is short.
· Deposits growing: we offer a very high APR but not for the annual return but the average return we get if we keep the deposit for the maximum period proposed. Tip: keep in mind that withdrawing the money ahead of schedule will give us a much lower cost.
· Early settlement: the bank offers interest charge right after opening the container, no waiting. What is not usually advertise that, in return, get lower nominal interest rate (up to 0.20% lower). Tip: take the deal if we have the money as soon as possible but to reject and propose to settle monthly, annually or at maturity, if we do not hurry to get the benefit and we want to achieve maximum profitability. And above all, ask the bank how it affects the assessment rate on profitability, both APR and TIN (nominal interest) and how far we can choose … or negotiate.
