3 Practical Tips to Get Started in the World of Deposits

 3 Practical Tips to Get Started in the World of Deposits

3 Practical Tips to Get Started in the World of Deposits

 3 Practical Tips to Get Started in the World of Deposits




Term deposits, along with bank accounts, are the least risky savings products on the market. Both the invested capital and the interest resulting from the deposit are doubly guaranteed by the bank and the Deposit Guarantee Fund (FGD) to which the entity is linked. However, if you have not contracted with anyone before and you will be interested in doing so but have doubts, don't worry, we'll tell you how your first bank deposit should be.


1. Short- or medium-term betting

Since the idea of getting a deposit is to keep the money fixed within it for the duration, it is ideal to rent a deposit of up to 12 months if you are interested in this type of product but you have many doubts and do not know where to start.


If you bet in the short term (for example, 6 months) or medium term (12 months), it won't take long to receive interest and recover the initial investment, which of course won't happen if you contract a deposit for 3 or 4 years, for example.


2- Make sure the investment suits you

Deposits, as a rule, usually require a minimum contribution during the recruitment process. In some cases, they may ask for amounts of less than 1000 euros, while others may ask for 5,000 euros or even 10,000 euros. Since funds cannot be refunded until the end of the term, it is recommended to choose a deposit commensurate with the minimum contribution required with your financial situation. If you have doubts, it may be better to start with a non-high investment.


3. Choose a deposit that supports early cancellation

It is true that the funds invested in the deposit cannot be recovered until the end of the term, but you will be interested to know that there are exceptions, because some deposits allow partial or total access to the deposited balance thanks to the early cancellation requirement. This item is not available in all deposits, so if you do not know whether you will be able to dispense with the money for the entire duration or if you think you may regret your decision later, we recommend that you choose the deposit that the contract contains on the item.


With regard to early cancellation, it should be remembered that its application carries a penalty that may cause a partial or total loss of benefits obtained so far. If you are considering asking for it, we recommend that you meditate well.