For people, families, companies and even the State of a nation, the concept of saving is very important, because if all these parties save they would not need to be financed by outside resources in case of needing financing and this will encourage the economy of a country.
Once we have savings, the most frequent is to try to get a return on that money and thus not be consumed by inflation itself. Now we are in the position of deciding what to invest my money. Spaniards still have a lot of banking dependence, both at the time of financing and investment, and the star product in our country is still the fixed-term deposit.
But watch out! the financial sector in our country is changing and there are already other real investment alternatives in our country and increasingly established. One of the methods that stand out the most is the investments through crowdlending platforms.
Crowdlending investors will lend their money directly to companies in our country that need it in exchange for an attractive return.
In this article, we compare the most consumed investment method in Spain with an alternative method that has been highlighted in recent years: Fixed term deposit. Invest through Crowdlending. We start!
Who is interested in investing fixed-term money?
Let’s first analyze the type of consumers of the fixed-term deposit. The people who most use this alternative of investment in fixed terms are the savers who seek to get an increase in their money by running the minimum possible risk.
For these savers, security is the most important, since getting a base of savings comes to time and effort and although they all want it to increase, they do not want to put into play the amount they have already saved; that’s why fixed-term deposits are the option they choose because they have an assured return.
Now, how about profitability? Let’s go see it.
What is the current situation of the investment of fixed-term money?
In recent years, the returns offered by most financial institutions for investing fixed-term money have decreased considerably, partly due to the current financial situation, which has led savers to try to obtain greater profitability by investing in alternatives unrelated to the banking.
Currently, taking into account the profitability of bank deposits of the most important banks in our country, around 0.10 %. Excessively little to carry saving so much time right? This can not be. We are going to look for solutions.
One of these alternatives to banking, where you can make an investment of fixed-term money with greater benefits are investments in crowdlending loans.
Invest through crowdlending platforms
Investments in loans through crowdlending platforms are an investment alternative from banks. This type of investment consists of that private investors lends their money to companies or individuals that need it in exchange for obtaining a return for their money.
The money invested through crowdlending has the following characteristics:
Investment period from 1 month to 5 years (approx., Depending on the platform)
The returns offered by the investment in crowdlending are much higher than those offered in a fixed term, being between 7 and 8% annual average.
All procedures can be done online, it is not necessary to go to any office, as happens with most financial institutions, which in many cases require that certain procedures are performed in person at one of its offices.
All crowdlending platforms evaluate the projects they publish.
But there is more! It is not necessary to renounce security. Keep reading.
No need to give up security
In the case of MytripleA, we offer guaranteed investments where the operations have the backing of a Reciprocal Guarantee Company that guarantees the operation. The Bank of Spain Circular 4/2016 qualifies the operations ensured by Reciprocal Guarantee Companies, as “No appreciable risk” operations, placing them in the same category as operations with central banks or the deposit guarantee fund.
These operations have a term of 3 years with repayment in monthly installments, the investor can withdraw the money to his current account at no cost or reinvest it in other operations. And now let’s talk about profitability. The investor obtains a 2% + Euribor of guaranteed return. Not bad considering the profitability of your term deposit, right?
This can be a relief for those savers who see that the alternatives of obtaining a return for their money increase, not depending solely on bank financing to invest their fixed-term money.
Now let’s see a comparative table between both products.
Time money vs. crowdlending Let’s compare!
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