With commissions and without profitability: how much do you lose with the dead money in the account?
Current accounts and demand deposits. The two products preferred by Spaniards to save their money are precisely those that less profitability and interest they generate, which causes that, despite being the ones who save the most in Europe, they are also the ones who throw the most money away. Specific, up to 160 euros per year. To this, we must add the ever higher commissions that in recent months the main financial entities of our country have been imposing.
According to the latest data from Bank of Spain, the total assets of Spanish households amounts to 2.3 trillion euros gross, around 50,000 euros per capita. Of these assets, 751.8 billion euros, almost el 32% remains stagnant in checking accounts and demand deposits. As a result, Spanish savers maintain in their checking accounts and demand deposits about 16,000 euros that generate practically no interest and that in some cases even generate a negative return, with which, in addition, they see their savings diminish over time. to negative interest rates and inflation, they point out from the fintech Raisin.
They calculate that if the Spanish had deposited those 751,800 million euros in time deposits with an interest of 1%, they would have earned more than 7,500 million euros within that period. On that basis, Spaniards lose 626 million in interest every month, essentially throwing away almost 21 million euros per day, 160 euros per year per person.
GREATER SAVINGS, BUT …
The mobility and meeting restrictions imposed in recent months to try to stop the advance of the Covid-19 pandemic, as well as the fear of contagion, are causing a increased savings capacity of the Spaniards who have kept their jobs. In fact, they save more than the French and Italians, with about € 15,996 per year per capita compared to € 9,433 and € 11,618, respectively. However, when it comes to making their savings profitable, the French, Dutch and Italians are ahead of us, who only have 12.2%, 16.5% and 16.6% deposited in products of low or no profitability.
Among savers, 44% have decided to invest part of that money, taking advantage of the downward trend in financial markets, and 39% preferred to keep it in the bank in anticipation of what may happen in the coming months, as reflected in a survey conducted by the fintech Micapptal. "With the current situation of uncertainty, savers are torn between the need to have an economic cushion that, now more than ever, they can have available to use if necessary, or take advantage of the opportunities offered by the markets at this time, already that the decline in stock markets is allowing many investors better position your investments and at lower prices than usual, "they explain.
Not leaving money parked, setting goals, diversifying, being constant and realistic and having advice are some of the keys to ensuring that the money saved, in addition to being saved, conserves its value and in the medium or long term overcome the effect of inflation and taxes.
As highlighted by Banco Mediolanum, the confusion between parking the money and saving is one of the most common mistakes that are made and that prevent a good management of the families' wealth. "It is important put our money to work so that it does not lose value. With a clear investment strategy that meets the needs and good diversification, investing is the best option to obtain good long-term returns, "they say.
In addition, not knowing the real state of our finances and lacking planning often becomes another of the main mistakes we usually make. Many times we do not know the relationship between what we earn and what we spend or what objectives we have for the short, medium and long term. Nor do we consider what strategy we are going to use to grow our savings and save for retirement. As with everything, increasing your wealth begins with a goal. It seems obvious, but as life goes by it is easy to lose focus. Put the focus, write down your objectives and make them specific, measurable, possible, realistic and timely, they say in the entity.
They add that diversification is also essential when we talk about investing our savings. The checking account is fine for the money we may need in the short term, but it is not good for saving for retirement. There are various saving options for our future, which will depend on the risk profile, time horizon or objectives of each saver. Diversifying reduces risk and reduces volatility of investments, they conclude.