Choosing the bank account as the main, and sometimes unique, savings instrument makes us miss great opportunities. Beyond the current situation of low interest rates that punishes these products with practically zero returns, the characteristics of this liquid product, which we can have at any time, make the interests they provide always low and, therefore, no solution to many of the objectives and goals we set when saving.
Savings insurance the best option to establish medium-term capital
If having money in an account can help us to cover urgent contingencies, as we have already advanced, it is not the best way we have to save with a specific objective or simply if we want to establish capital in the medium term. The same happens with a deposit, with the added handicap that almost all of these products are based on an imposition that is made when contracted, recovering the capital plus the interest generated at maturity, when the predetermined term of this product is met; that is, we cannot make periodic contributions. The opposite occurs with savings insurance, which clearly shows us a good part of the advantages of saving with insurance.
With a savings insurance we can make periodic, flexible contributions, with total security of recovering our capital and in addition, the generated interests offer a profitability superior to that of a current account. All these points make savings insurance a perfect product to channel savings in the medium term.
PPA, an advantageous option for retirement savings
In the long term, the main need or goal of saving is to complement our retirement pension. The incompatibility of having our money in an account that does not provide any return or is very low is clear, but it is also so if we “invest in brick”, where the variation in prices or difficulty of sale often prevents the profit generated. And all this if it is not the first home, since opting for other formulas such as a reverse mortgage to get an income is always an important equity decrease.
On the opposite side we have products such as Retirement Plans
Through the periodic contributions we make to this type of products, we will obtain capital or income that will help us enjoy our retirement more, without risking our capital and adding the profitability that your contributions periodically accrue.
All this without forgetting the tax benefits of the retirement plans extensible to the pension plans, with which you can reduce your income from work or economic or professional activities up to 8,000 euros per month or 30% of the earnings of your work activities -always the smallest of them.
In short, if you want to improve your savings and adapt it to the goals you pursue, insurance is a great ally to not only earn more, even if your tax payment is less.