On the verge of receiving the gratificationadded to the recent deposit of the Compensation for Time of Services (CTS), many are looking to make their savings profitable. However, given a scenario of uncertainty and for those who need low-risk bets, the fixed-term deposit appears as an alternative. To know the details about this instrument, Caja Huancayo raised a question theme table along with Management.
What does it consist of? It is an investment that is made in a financial institution, previously agreeing on an amount and term for which a natural or legal person will order their money, for which they will receive interest.
Jair Carhuallanqui, head of the Department of Recruitment and Services of Huancayo Boxrefers that, compared to 2021, interest rates nearly doubled.
“This translates into macroeconomic issues, the rise in the reference rate of the Central Reserve Bank (BCR) causes the interest rates of all financial instruments to rise”indicated.
In addition, the pandemic caused a low flow of demand for savings because these were used. In this sense, interest rates are now around 9% and projections indicate that they will remain that way for a few more months and then they will level off.
“During the second quarter of 2023, it is possible that rates will begin to drop. It is a good time to make our money profitable in a fixed-term deposit”, the expert maintained.
For example, at Caja Huancayo, until December 2022, interest will be granted for 8.5% in terms of one year and 8.75% for a year and a half.
A low risk option
Unlike other investment models, he says, this one is characterized by being safe because the interest that will be earned is limited.
The profitability of the fixed-term deposit is safe, but as long as it is made in a financial institution supervised by the Superintendency of Banking, Insurance and AFP (SBS) and that it has the support of the Deposit Insurance Fund.
“It is important to review the risk profile of the financial institution, it must have a good level of liquidity so that the money is safe. The SBS publishes this information on a monthly basis”, recommended Jair Carhuallanqui.
From what amount can you invest? In Caja Huancayo you can open a fixed-term account from S/100. But, he warns, you have to be careful when some financial institutions offer an interest rate that only applies to amounts of S/300,000 and over and for terms of four or five years.
Recommendations before investing
- You can withdraw the money when you save in a fixed-term deposit in Caja Huancayo, but you no longer pay the same agreed interest rate, but a rate as in the case of a current savings account.
- It is very important that people know the expenses they will have in the short, medium and long term before allocating their money to savings.