The importance of security and profitability
The amount of money we should have in the bank is a strategic decision that should be based on the security and profitability of our savings. This concern is evident, since our ability to make ends meet and face unforeseen expenses depends on this factor.
Recommendations to minimize risk and maximize value
Join us to learn a little more about the recommendations offered by the Organization of Consumers and Users, to minimize risks and maximize the value of your money.
The Deposit Guarantee Fund (FGD)
The Deposit Guarantee Fund (FGD) is a key tool to understand the security of our savings. This fund guarantees up to 100,000 euros per owner and entity. In the event of bank failure, the FGD ensures that each holder receives up to that amount.
Therefore, any amount exceeding €100,000 will not be protected in the event of bank failures. This limit is crucial to plan how to distribute our savings between different accounts and banking entities.
OCU recommendations
The ideal is to keep in our account an amount equivalent to three monthly payments of our salary. This recommendation is based on several factors:
Immediate Expense Coverage
Having the equivalent of three months’ salary ensures that we can afford the payment of receipts and direct debits for the products and services that we have contracted. This includes rent, mortgage, utilities, and other recurring payments.
Emergency Mattress
This fund also provides a vital cushion in case of unforeseen emergencies, such as car repairs, renewing appliances, replacing electronic devices or home repairs. Having these savings can prevent us from falling into the red and prevent debt.
Avoid excess money in the checking account
The OCU highlights that having too much money in the checking account can be counterproductive. If the amount equivalent to three salaries is exceeded, it is advisable to look for more profitable financial products.
Distribution and Management of Savings
For those who have savings greater than the limit of three monthly payments, the OCU suggests diversifying and distributing these funds to maximize security and profitability. Below are some recommended strategies:
Division between several banking entities
If you have more than 100,000 euros in an account, it is advisable to divide the money between several entities to ensure that each account is within the limit guaranteed by the FGD.
Profitable Financial Products
These types of financial tools are an ideal alternative to diversify your banking liquidity. Below we show you some interesting financial alternatives:
Term Deposits
For those looking to save in the short term, fixed-term deposits are a safe and profitable option. These deposits usually offer a fixed interest for a set period, usually one year.
Investment Funds
For medium or long-term savings (between 5 and 10 years), investment funds represent a viable alternative. These funds allow you to diversify investments and, although they have a variable risk index, they can offer higher returns than traditional checking accounts.
We hope that this article will allow you to learn a little more about how to use your money when investing it and avoid possible financial losses.
