In a situation of energy uncertainty and war on the continent, we increasingly hear the advice “start saving”. In words, it sounds easy, but what should we do in practice, especially if saving has not been on the agenda so far, and family finances are distributed to the penny?
The first step is to think “Do I have funds that I can set aside initially”. This can include all kinds of options – money set aside from children’s birthdays, funds from business trips, a certain amount that you have kept in the cash register at home in foreign currency for years as a memory of an unforgettable excursion, the remainder of the purchase and sale of a car, or yes say – a property that you rent out. What to do with that kind of money, if you have it, in a little while…
If you don’t have them, however, the golden rule of setting aside 10% of income remains. Many do not want to admit it, but there is a way to “shrink” without violating their standard of living. The important thing is to calculate the expenses – for bills, food, etc. If the amount you have left seems too small, think about where you can “cut” without radically changing your habits. A simple example is getting your favorite products on sale or in bulk. Or to optimize predictable events, such as birthdays, trips – with enough good planning, a lot can be saved.
The second step is to make the money saved multiply. Standing in the cash register, in the purse in the wardrobe or under the mattress, they will lose their value at most. Therefore, it is best to take advantage of a financial product that will bring you profitability. You don’t need any financial knowledge, just simple math to calculate the amount you deposit + the interest by exactly how much it will multiply that amount.
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We take as an example “Investbank” JSC, which since August 10 removed the fee for stock storage for its customers. If you choose, say standard deposit, you deposit the set amount, and subsequently you can also deposit, and the interest will also be applied to the funds deposited. The minimum in this case is BGN 500 or euros, dollars (BGN, EUR, USD) and you decide the term of the deposit – whether it will be for 1, 3, 6 or 12 months. It all depends on the calculation you make of the costs and what you can set aside to make it multiply.
Here’s a closer look at what you’ll earn if you’re an individual:
And if you are a legal entity:
The idea is that the more money you deposit initially or bring in after opening, the more you will earn. The interest rate for 12-month deposits in BGN and EUR is 0.70%, and the bank can pay the amount on the deposit account, on an open-ended deposit or in your checking account. When choosing a deposit, keep in mind whether it allows partial withdrawal of amounts from the deposit. With the standard deposit of “Investbank” AD, it is not allowed.
A flexible option to multiply the amount set aside is i eis“Start” position, the term of which is 12 months, and until the end of the fifth month you can extend it or terminate it early without losing the accumulated interest. Here too, the minimum deposit is BGN 500 or EUR 250.
You can top up funds monthly until the end of the fifth month from the opening of the deposit, as long as the total monthly top up amount does not exceed the amount with which the deposit was opened. The interest is charged and paid monthly on a checking, savings or card account, and as a bonus you get the opportunity to include the “Time is money” service for free on the account on which the interest is paid.
There are options as well ONLINE Deposit, which allows you to discover it completely remotely, plus a huge choice of terms – 2, 4, 6, 8, 10, 12, 15, 18, 24, 30 or 36 months. This is an opportunity for people who have not had a deposit before to try the product for two months, for example, and then choose a longer term as well, making sure that their money grows. And, of course, for people who are used to doing most of their engagements online. The minimum opening amount is BGN 1,000 (or 500 euros), and there are no restrictions on the maximum amount. The interest rate is up to 1.05%.
And if you are one of those people who bring income from abroad or often travel, the deposit can be funded by a transfer from the depositor’s account to a bank both in our country and in EU member states, in Switzerland, Iceland, Norway, Liechtenstein or Great Britain. In addition to the fact that there are no fees for incoming currency transfers when the account is funded, fees for opening and maintaining the deposit account, nor fees for withdrawals from the deposited amount at maturity, monthly top-up of funds is also allowed. And the interest is accrued daily and paid on the final due date.
These are just a few examples of deposits to make the money you have available grow. The idea is to see visually how much percentage they can grow, depending on the term for which you have deposited them. This is a good incentive to start saving, as economists and financiers advise daily on television. Because whether we like it or not, it seems that the times of saving have come and many of us have to rethink our financial habits, optimize them and finally – the saved bring them the “reward” for having saved it. And calm to meet the “difficult times” predicted by many. And if they get along, even better – what’s saved is saved.
The text was prepared for “Investbank” AD