Remunerated accounts, apps with FCI money market, and fixed-term deposits are some of the options to make savings profitable in a conservative way.
Virtual wallets: what are the differences between a remunerated account and a money market fund?
In times where still Monthly inflation continues to hover around 5% and interest rates are in negative territory, come to market different options to try to make savings profitable but each one has its own particularities.
One of the alternatives is remunerated accounts. This option is similar to a fixed term because the person or entity makes their money available to a financial institution. In exchange, the institution keeps it safe and returns it with interest to be paid when the agreed time has passed.
The paid account service is offered through apps, applications, digital banks and fintechwho offer users a monthly interest in exchange for having their money deposited in them. Unlike the fixed term, In remunerated accounts, money can be accessed almost immediately.
One of the disadvantages it has compared to a fixed term is that They have a certain limit for the total deposit amount. They do not offer diversification, since the money is deposited in a single bank account.
Another alternative is the app that offers to make money through the Money Market Mutual Funds. Behind these accounts there is an instrument that invests daily and shows daily interests which generated but, unlike traditional fixed terms, allows access to the availability of money at all times.
MM FCIs may have slightly higher returns than those offered by a remunerated accountbut varies depending on market conditions and fund management. They offer high liquidity, allowing redemptions in very short periods, sometimes from one day to the next. By investing in a basket of financial instruments, they allow risk diversification.
Source: Ambito
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