Today we talk about the options that can be found in guaranteed savings products, without risk, as well as the alternatives that are being offered to customers in banks and other entities.
Unattractive alternatives in banking
We have been hearing recently that our clients are being offered guaranteed 7 or 8-year investment funds in bank branches, 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 this product is subscribed to without, at least, seeking better conditions.
We are facing a situation in which the banks had to provide a conservative solution to all those clients 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 the banks, many customers will have to hold their money for a long period of time, with significant liquidity restrictions.
The limitation in investment options, for a large majority of clients who do not belong to private banking, is increasingly greater in banking institutions.
In many banks, talking to them about guaranteed options in SIALPs, PIAS or PPAs sounds “as if it were Greek”. Many people have come to the brokerage firm telling us what they are told by banks: that, in order to have profitability, you have to risk in investment funds, shares of listed companies or non-guaranteed pension plans.
In our opinion, what is NOT acceptable, is that in order to have your money protected, you have it retained for years under unfair conditions, while you are being charged maintenance and management fees of all kinds.
In the banking market we find a very high increase of balances in current accounts due to the impossibility of leaving money in deposits or guaranteed products. In other words, people prefer not to obtain profitability in order not to lose money. This is logical for conservative profiles, but should be considered and solutions should be sought in view of the prospect of negative or minimum rates in the medium term.
Insurance company options
But, are there possibilities of insured investment in companies with rating and solvency equal or superior to any Spanish bank?
The answer is yes, these options exist and are within our reach in the market, available to anyone who wants to obtain some profitability, without risking their savings.
At PIB Group Iberia e Inversión, 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.
