If you have already saved, but you don’t know where to put your money
In this article, we’ll walk you through all of the market saving opportunities with the goal of choosing which one is most sympathetic to you and which best fits your goals. We go from the simplest and least risky savings opportunity to the most risky, where we can win big, but we can also fail. Anyone can leave the menu where their capabilities and risk-taking capabilities allow.
The simplest way to save money is a monthly fixed deposit
Many people may have a problem with an unexpected release slipping at the end of a month, even if it is not significant. This can be a great remedy if you put a fixed amount each month into a well-established mason jar or its more advanced version, usually a free savings account. If we put away 1000-2000 forints a month, which we might spend on something less important, we will be 12-24 thousand in a year, and if we make 10 thousand forints in a year, we will be 120 thousand forints in a year.
It will be good to see month-by-month how the reserve builds up almost imperceptibly, and with the end of each month we will become more and more confident about increasing savings. The point is not to set aside a thousand or 20,000 forints a month, but to establish a habit .
By averaging the known non-regular major expenses (such as insurance, mobile recharges, annual transport rent, heating costs, vacation, etc.), we can also set aside each month evenly.
Smaller unlabeled savings
If you have money that you do not need to spend temporarily, or if you want to spend it later (eg home improvement, vacation, technical item or car purchase), it is a good idea to deposit it safely in the bank.
Although interest rates on time deposits are currently very low and the tax burden on interest rates has increased recently, time deposits are still the most widely available risk-free banking product. We just need to make sure that our depositors and credit institutions do not exceed EUR 100,000 (about USD 30 million), because in the event of a bankruptcy we may lose the amount above. For the rest, however, the Good Finance Insurance Company Fund (OBA) is in charge.
If you have a bank deposit, you may want to check the available interest rates, their types (fixed or floating rates) and the terms of their early maturity before investing, before you need to pay any money sooner. Recently, that is, decreasing or decreasing. in an age of low interest rates, fixed interest rates seem more appropriate, whereas if interest rates are expected to increase, they are more likely to be variable.
In any case, it is worth keeping your temporarily free money in a fixed deposit, not in a current account! Not only because it’s less likely to be touched, but also because access to term deposits is not possible in the event of any attempt at credit card fraud, since it is not in a checking account.
There are three types of savings that are risk-free yet offer a higher return than a simple term deposit. And as a fourth special savings, we can take care of our retirement years, which is increasingly important.