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Where it is advantageous to save money?

Two per cent on time deposits and savings accounts even less. It is now remunerated deposits in those banks better. The good news is that inflation has consistently held well below one percent, and a good savings account and above with an overview prevail. But beware of hidden charges, they can snip the majority of revenue.

If you bank three years ago offered a five per cent appreciation of the contribution, it was actually like now at two percent. "Inflation was then slightly below three and a half percent, while last August it was three percent less. By subtracting the inflation rate from the interest rates you get real value for your money, "says Luke Green, head of the legal department Dtest.

Rather choose a savings account or a term deposit? Each solution fits a little bit to something else. A savings account is a good way station for the monthly surpluses than move into longer and more favorable investment or simply spend. Term deposit (or its equivalent - a savings account with notice) it requires planning.

Term deposits are interest-bearing better than savings accounts. It's a prize that money can not for a pre-agreed period of use. Or you can, but it's not worth it. Some banks will be fine in the amount of the previous assessment. But the fine can be even higher than the interest rate, and you did not even get to what you originally entered. You can also choose a "hybrid" savings accounts that allow, for example, one selection per month without penalty.

For term deposit, it is necessary to analyze the development of inflation. "Sometimes it seems illogical that the longer the deposits offer lower or, conversely, significantly higher interest rates than shorter deposits. It's the just-expected inflation and the related expected development interests. When a bank calculates that interest rates will rise, take into account that for long deposits, as well as if expecting a decline. Today we are more in a situation where low interest rates foreshadow a possible increase in longer-term deposits and therefore seem more preferably, not only due to the premium for longer bound by money, "says Luke Green.

Low interest rates highlighted the absurdity of the charges on savings accounts. In such an assessment would also low fees could pare most of the profit account or sending them straight into the red. Aware that there are banks that today the vast majority of deposit products offered free of charge, although they can impose conditions.

If the condition for the existence of a current account in the same bank, whose clients still are not well read the tariff. To illustrate - if you put away ten thousand per year at a rate of two percent, reached after deducting approximately 170 crowns. "Just patnáctikorunový monthly fee associated with the management of the account and you're in the red. Count with the necessary operations. Not every bank has, for example, free incoming payments from another institution, "says Green.
Results comparing savings accounts and term deposits of banks and credit unions can be found at www.dtest.cz/sporici-ucty.


Source: tz dTest.cz

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