Today we talk about the options that can be found in guaranteed, risk-free savings products, as well as the alternatives that are being offered to customers in banks and other institutions.
Unattractive alternatives in banking
We have been hearing recently that our customers are being offered in bank branches guaranteed investment funds 7 or 8 years, with yields of around 0.50%, and with redemption fees outside liquidity windows of 5% on the capital... We do not understand, firstly, that something so extremely twisted can be offered and, secondly, that such a product is subscribed to without at least seeking better conditions.
We are faced with a situation where, banking, I had to give a conservative solution to all those customers who have had substantial losses in mixed funds (since their managers offered them these funds as the only alternative to obtain a minimum return), which in most cases has been negative, and not just a little. Many will know what we are talking about.
Money in an account or in investment products?
As we can see, in these alternatives offered by banks, many customers will have to hold their money for a long period of time, with significant liquidity constraints.
The limitation on investment options, The number of customers, for a large majority of non-private banking customers, is increasing in banks.
In many banks, talking to them about guaranteed options in SIALP, PIAS or PPA, sounds familiar “to Chinese”.”. Many people have come to the brokerage firm telling us what they have been told by banks: that, in order to have profitability, you have to take risks in investment funds, shares of listed companies or non-guaranteed pension plans.
In our opinion, what It is NOT acceptable, The only way to have your money protected is to have it held for years under unfair conditions, while you are being charged all kinds of maintenance and management fees.
In the banking market, we find a very high level of increase in current account balances Given the impossibility of leaving their money in deposits or guaranteed products, people prefer not to earn a return so as not to lose money. In other words, people prefer not to obtain returns in order not to lose money. This is logical for conservative profiles, but should be considered and solutions sought in view of the prospect of negative or minimum rates in the medium term.
Choices in insurance companies
But, are there insured investment possibilities in companies with a rating and solvency equal or superior to that of any Spanish bank?
The answer is yes, These options exist and are available in the marketplace for anyone who wants to earn a return without risking their savings.
At PIB Group Iberia and Investment, we can advise you on the different investment options, with the possibility of diversifying both in products and companies, offering you the best current market conditions.
