Fixed term vs. Savings accounts, which one is better?Uncategorized
Every year, Argentines learn a little more about saving and why it is important not to spend their entire salary on purchases, departures and other items. And once they raise a certain amount of money, what you have to decide is what to do with it.
Will a savings account be the best?
But what about the fixed deadlines? Are they not interesting alternatives too?
The truth is that there are many things you can do with your savings, but to make a decision, you must consider some key points, including how much profit you expect to receive, as well as your profile:
Will you use that money in a short time?
If the answer is no, then a Fixed Term would be an ideal option, since you will sign a contract in which you agree not to withdraw the money before the established deadline expires. So, if you open a DPF a year, you will have to leave your money there until the day is over. If you have plans for cash, it is not the right option.
If you’re just starting to raise money
In this case, when you are just starting to save, the most convenient is a savings account with an attractive interest rate. Basically because in a fixed term you only deposit the money and there are minimum amounts to meet. Some entities have an option where you can increase the money, but others do not allow modifications to the initial amount.
If you want to be free to use it
If you want to save and earn interest, but be free to use the money whenever you want and at whatever you want, a savings account is still your best option, because with a DPF you will not have that freedom.
If you are a bad saver
If you managed to raise a certain amount of money in a miracle and you need to avoid spending it at all costs, a Fixed Term is ideal, since you will not have a card or there will be no way to withdraw the money without canceling the contract, which is a longer process and that It will make you think twice before making the decision.
As you can see, both options are very convenient, but the choice will depend entirely on your needs. In addition, remember that not all options have a competitive interest rate, ideally, the partners choose one to be sure to opt for the right alternative.