Within the world of deposits, there is a wide range to choose from depending on how much you want to invest, how long you can do without the money invested and how you want to use the money later on.
These types of products are usually simple and safe.
Like current accounts and saving accounts, deposits are protected by the Deposit Guarantee Fund, which guarantees up to €100,000 per holder if the financial institution goes bankrupt.
Bank deposits include the following:
Demand deposits or current accounts:
This is the most flexible deposit because you can withdraw part or all of your money whenever you want without penalty.
They also offer certain benefits such as returning a small percentage based on your direct debits. The disadvantage of this type of deposit is that it doesn't yield a very high return.
The main characteristic of these deposits is that your money will remain in the deposit for the length of time specified in the agreement. However, the bank will give you a higher return at the end of the term based on the agreed interest rate.
You can cancel the deposit and get back your money before maturity but you will probably have to pay a penalty for early cancellation.
The interest on this type of deposit is referenced to the benchmark index. The advantage is that you won't lose the money invested but it may not yield a return when the deposit matures.
Foreign currency deposits:
These deposits work in the same way as term deposits and variable-interest deposits, the only difference being that they are denominated in a currency other than the euro, such as the US dollar, the British pound or the Japanese yen.
In this case, the return will be based on the benchmark index of the currency in question and will vary according to fluctuations in the currency interest rate.
These are a more complex type of deposit due to the way they work. The return depends on the performance of a specific index or the value of a group of shares. This means that when you purchase the deposit, you won't know the final return and you will have to keep track of its performance.
Structured deposits should not be confused with structured bonds which are not protected by the Deposit Guarantee Fund.
Bank deposits are a good way of getting a return on your savings based on your profile and needs.
At Bankinter we have a wide range of deposits for saving safely.