The agency considers that checking accounts are not the best place to keep your savings
In order to manage your salary, the most normal thing is that you have a checking account in a bank. Your salary or your pension will be entered into this account, the receipts that you have domiciled will be directed to it. If you do not have many expenses and you manage to save month by month, the balance of your account will increase little by little.
The Organization of Consumers and Users (OCU) considers that checking accounts are not the best place to keep your savings, since practically no entity rewards them with interest. It must also be taken into account that each bank offers different benefits or accounts that do not give anything but take away. For this reason, from the organization they recommend having only a liquidity reserve, which you can use at any time to be able to face unforeseen events, such as a car breakdown, a fine or a broken home appliance.
According to the OCU, a prudent amount can be the equivalent of three months of your salary. Remember that if you maintain a very low average balance, you may run the risk of staying in the red and that the bank will begin to charge commissions, because you receive an unexpected charge or a receipt for an amount greater than what you expected. The OCU advises not to have more than 100,000 euros in the bank, now you will discover the reason.
short term savings
For short-term savings, meaning money you can spare for a 12-month period, you can invest in a one-year term deposit. Remember that some deposits do not allow early cancellation, or only at the cost of losing all the accumulated profitability.
long term savings
For longer-term savings, for money you don’t plan to touch in the next 5 years and ideally 10 years, you can get a little more return, knowing that there will be seasons when you will take some losses. If your savings exceed 100,000 euros in accounts and deposits, try to distribute them among several entities, because in the euro zone, the Deposit Guarantee Fund only covers up to 100,000 euros per holder if the bank goes bankrupt and cannot return what you keep in it .
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