Bank deposit. You know how it works?

When hiring a bank deposit must look at several things and although it seems to be the easiest investment there, it is not the end of the post and I will tell you that if it is, we have to fix on the characteristics of product we hired, mostly to give us for a ride and at the end we get on a good scare and anger.

Before everything. A bank deposit, fixed term or fixed-term deposit is the same. You will leave some money to the bank to do its thing and he in return gives you a interest as compensation. It has a fixed duration and fixed remuneration contract is fixed, ie before entering already know what you're going to win. They are also guaranteed by the state (FGD) 100,000 per entity and person in case of bank failure.

This strong interest is mainly governed by the Euribor (interest rate to lend money to, including, entities) but with the whole issue of the crisis the illiquidity of banks have had to forget the taxes low interest rates by the European Central Bank (ECB) and make aggressive campaigns to individual customers a higher interest rate.

While official interest rates are at 1% banks are paying them to liabilities with 4.6% APR and without any connection from the client.

We will explain in more understandable words what the previous sentence. THE European Central Bank fixed in 1% the interest rate at which it lends money to banks, that is, that when you decide to open a window of liquidity to banks in need come to him to refinance because only charged 1% APR, which is very little.

But as always there are windows of liquidity banks must ingéniaselas to get more money and this is where the competition starts to get money from ordinary citizens.

Clearly, there are many people who prefer not to earn a little extra to have to change banks but there are many people and with real money if you are willing to move to earn more.

Therefore, the most interest is willing to offer, in theory, is the one with more numbers to get more funding. (Although other factors influence how the country of origin of the entity, rating rating and even if you drop close to home or if you are good at managing the Internet).

Once we are clear because there are going to explain bank deposits which typically offer entities and that we'll be looking.

There are several types of deposits but of course we say that we are interested only pure and hard deposits without additional links, no credit, no insurance, or payroll or anything.

Being a low-risk investment, and suitable for every investor profiles, we can see that the investment triangle occupy a very relaxed site to be a liquid investment, low risk and therefore unprofitable.

Investing in this way we will not get rich but how low we will not lose money, and I say now lose because if you go to a lot of companies and they offer a lower interest rate to 3% and enter missing. So clear.

If you want a band inflation eats it otherwise you better grab your money and spend it how you will at least give pleasure.

We also have to look at whether the associated account where interest is exempt receive commissions or we will charge between 6 and 20 euros per year. Thing that still remains for the low profitability that we provide.

Now we are chastened and they do but you have to be careful that we do not give any kind of product then selling costs or recover the money, you can leereste article preferred to go deeper on the subject.

Remember that the bank is to serve. 's not your friend , and if not keep his promises or not treating you how you deserve there are dozens of them scattered throughout the geography.

As a final conclusion and summary say that everyone who has "some" money should try to get some performance to keep purchasing power and try to at least get something "extra". Do not be charging for anything and remember that it is you who is indebted to the bank money and not leaving you giving interests.

Finally, always read the fine print to take no surprises.

Indeed, investment is simpler than having no money at home. In contrast is the least profitable of all but ultimately is an investment at 0% APR.

I hope this clarification have no hesitation in going to the bank to make "some investment" and if you do not hesitate to contact me.