The central bank base rate, which is currently 0.9%, has been steadily declining in recent years. Correspondingly, the interest rates on loans and deposits decreased. Bank borrowers have been favorably affected by this interest rate reduction process, since the burden of repaying a loan is already much lower.
But if we want to start with our money saved, we have to face the fact that we generally have to be satisfied with a deposit rate of around 1 percent. We look at the situation in the term deposit market and show that despite the low central bank base rate, deposit rates above 2% can be found.
If we have saved money
Suddenly we get a significant amount, we wonder what to do with it. Take $ 1,000,000 as an example. This amount is not enough to make buying real estate today the best investment. But it’s too much for one million for us to keep it at home in the drawer in the socks.
We receive several comments under similar articles that “I will never put my money in a bank again, but rather keep it at home!” But what happens when a burglar takes our treasured money? It is clear that we have money in a bank. It is also important that the National Deposit Insurance Fund pays compensation for the money we deposit in deposits in the event of the banks becoming insolvent. The indemnity is equal to or less than HUF 100,000 per depositor and per credit institution, ie slightly more than HUF 30 million.
Thus, term deposits remain the safest form of savings, and when you make a deposit, you know in advance how much interest you will receive at the end of the term. It is worth comparing deposit offers with a calculator .
Interest above 2 percent, even unconditionally
Looking at the offers of several maturities, we can see in the calculator that you can get the highest interest rate for a 12-month or 24-month deposit by choosing Goodbank A Deposit For Future . Goodbank offers a 2.40% interest rate on a 24-month maturity period when depositing fresh money . The bank will treat as fresh money the amount that came from sources outside the bank that were not committed within 90 days prior to the deposit date. The calculator calculates that by depositing HUF 1 million this deposit can increase our net savings by HUF 38,279 over two years.
It is also important to know that Goodbank will pay 30% of the interest in case of a deposit break if we wish to withdraw money within 90 days of the deposit. Clients can manage their deposits online and any transaction can be made online (either by phone or in person) and deposits placed here are covered by the French Deposit Guarantee Fund up to EUR 100,000.
What other options are there?
It is also worth mentioning that the interest rate on the E-money Bank Variable Deposit is linked to the MNB base rate , so that with the change it may decrease or even increase the interest rate of the deposit over the term.
We currently expect a 1.65% interest rate on this deposit, which gives a net interest of $ 13,035 at the end of the 12-month period, calculated at $ 1 million.