Slovaks currently have more than € 38 billion in bank deposits. This money is almost no return. Most of them are on bank accounts where interest is just over 0% pa Where do you invest if you want to earn 3, 5 or 7% pa?
Banks offer only minimal interest
Current accounts offer interest of 0% pa They have Slovaks more than half of their savings. Tied deposits are not much better off.
The largest Slovak banks, where most of the savings are lying, offer such interest for 3-year term deposits above € 10,000
If you want to earn more, in the first step you have to leave your bank. The second step is choosing the right products to invest.
It does not matter how much your investment makes
In the image below, you can see how much you can get if you do not keep your savings on bank deposits with minimal revenue for the long term and use better earning products instead.
To illustrate which products earn more than bank deposits, I will list some specific mutual funds that can yield higher returns than bank products offer.
Our First Real Estate, First Retirement
- Revenues in the past – 2.9% pa in the last year, 2.92% pa in 3 years, 4.76% pa since the fund was established.
- According to the administrator, the recommended investment horizon for this fund is more than 2 years. It is a special real estate fund and invests in securities closely linked to the real estate market. The Fund participated in several well-known development projects (Petržalka City, River Park, Tower 115, Westend, etc.).
- The fund offers a fairly stable return and may be suitable for short-term savings. Do 30.5. 2019, this fund can be invested with a 100% discount on the entry fee.
Global Multi Asset Tactical Funding A-ACC-EUR, Fidelity Investment Management
- Revenues in the past – 4.46% pa in 3 years, 4.62% pa in 5 years, 5.00% pa in 7 years, 5.88% pa in 10 years (date as of 5.5.2019).
- It is a mixed fund with relatively active management. They can invest in different assets according to the current market situation. Its goal is to achieve steady growth across the entire market cycle.
- The fund is suitable for more conservative investors, for whom low volatility is important and at the same time they want to achieve higher returns.