There’s been a lot of talk lately about the need to save money, so it’s a good idea to look at the options available to anyone looking to save money.
What are our expectations for a savings account?
Don’t be too expensive to maintain it. (That’s why we don’t buy life insurance, you can read a lot about it here.)
Be free, whether I want to add or take it out, I can do it.
It should be available for a relatively small amount
Every month when we deposit at least HUF 10,000 a month, we get a high interest rate, currently 7.5% per annum. Otherwise, 2.5% annual interest for that month, and if we withdraw money from the account, only 0.15% interest for that month. (But this can be prevented by keeping two accounts and transferring the remaining money to the other account where it will be interest bearing.)
Free account opening, zero HUF monthly fee, free netbank, free online transfer within the bank.
The maximum amount is 5 million HUF / account, but one person can open up to 3 accounts.
If more serious money is raised, you can save it on a higher interest rate somewhere else or on a TBSZ account free of interest.
Our second competitor is the E-Money Predictive Deposit Account , similar to Good Piggy Bank, with the following differences:
Only customers with E-Money current accounts
(This is not a requirement at Good Malacpersely), but are free of charge.
The interest rate is only 0.15% up to 10 thousand per month, 3.25% up to 40 thousand per month, and 6% over 40 thousand per month.
The share above HUF 2.5 million only yields 0.15% interest. (Good Piggy Over 5 million, not every year, but in total.)
Third competitor is the Litcredit Regular Savings Program . Unlike the two products so far, the focus here is on investing in mutual funds. There are six funds available for a home fund manager, Pioneer, with a minimum monthly savings of $ 10,000. We can also invest some of our money in “high-interest bank deposits”, but neither the announcement nor the terms and conditions indicate how high the interest is.
One disadvantage of a security is the need for a securities account
(And bank account), along with all of its costs, and because the form of the investment results in unpredictable returns. According to Litcredit, the 5-year yield was 2.5-6.7% annually, depending on the fund, and the 2-year yield was up to 20%. I can’t imagine how this came out to the bank, but in any case, I’m copying the official results of the funds involved, though at this point there is no 2 year return.
Money market fund: 5.01%, Hungarian bond fund 4.61%, Central European equities -7.87%, international mixed 4.26%. The remaining funds are not even a year old, so there is no data available.
According to the prospectus: “As an example, an analysis of the performance of the following three pre-assembled investment portfolios over the past two years showed that, even for a secure portfolio, returns were above 11% per annum and for dynamic portfolios was close to 20% per annum . (in the case of savings in investment funds).