It's amazing how easily insurance companies and banks trumpet returns in savings schemes exceeding the guaranteed 1%, even 2%. Today we want to explain what questions to ask in order not to fall into the “cheating» and save more wisely.
Current savings products
Today we all know that guaranteed savings will give us a lower return than a few years ago. Where before, bank deposits could give us up to 3%, today the figures do not go above 0.3%...
Insurance companies have come out with products that seek to offer a guaranteed profitability PLUS a share in profits which is variable.
This variable part will depend on the profitability of the insurer's investments, which they share with the policyholders. In this way, and in the face of the restrictions of the Directorate General Insurance, The aim is to avoid tying themselves to yields that are too high for the current interest rate situation.
PIAS and SIALP are the most common guaranteed savings products today.
Returns on savings plans
When we look at a guaranteed savings product we should ALWAYS ask about the NET return. When you see a large 3% return or 1'5% of guaranteed interest, you have to ask yourself: “Is this the technical interest rate or is it the net interest rate?.
- The interest rate technician is the same as gross profitability, i.e. one from which the costs attributable to the customer have not been deducted.
- On the other hand, the interest rate net, yes he is the one who stays “clean”, real, of the client.
The obligation of those of us who advise on savings issues is to speak transparently to the client. That is why we always try, when we are dealing with this type of product, to speak in terms of returns net of expenses. We believe that the lie “has very short legs”.”, and you will always be checked if you promise a 3% that doesn't happen, and you actually get less.
The best savings plans
Nowadays, the variety of products is infinite, and the best thing is to be able to analyse the market and the different institutions to see which product best suits what we need. There are many issues to consider:
- Profitability we are looking for
- Security
- Permanence required by an entity to recover the money (liquidity)
We work with more than twenty insurers, so we constantly compare savings plans, and we know who is giving the best returns.
Do not hesitate and contact us to inform you about the product that best suits you.
