What is more convenient, a deposit in the short, medium or long term?

What is more convenient, a deposit in the short, medium or long term?

DepositWhen it comes to making safe investments, it is clear that deposits are the products that have the best conditions in terms of security and simplicity . However, a fundamental aspect when depositing savings is to choose the most convenient period. This will determine one or another profitability, although it will prevent us from accessing the investment for more or less time. Below, we show the pros and cons of each deposit depending on the term and the alternatives for each of them.



Short-term deposits, less profitability but more independence

Short-term deposits (understood as those between 1 and 6 months) are often also called welcome deposits . Often, these short products work as a claim for new clients, since they present very attractive returns for one or two months. However, this remuneration drops markedly after that time and many times the product becomes a savings account. It is also common that they are used as “hinge deposits” , a fixed term where restless savers leave their money when leaving an investment and while looking for the next most profitable one.

However, as always, the current market presents an interesting diversity of options. In this sense, it is worth mentioning the Facto Deposit , which with fixed conditions regarding minimum investment (10,000 euros) and quarterly interest payment , offers a wide variety of terms.

Unlike the welcome deposits mentioned above, the short-term Facto Deposit is maintained as such from your contract until maturity. Specifically, this is the profitability that it presents based on the period:

Facto deposit 3 months

APR 0.25%

With an investment of 10,000 euros:

  • Benefit: € 6.25
Apply for
Facto Deposit to 6 months

APR 0.40%

  • Benefit: € 20.00
Apply for

Long-term deposits, fundamental to be sure that we will not need the money

Image result for long termOn the opposite side of the previous ones, fixed and long term deposits tend to have periods of around 5 years and a higher profitability. However, they require that the investor be very sure that he will not need the money in all that time , since, for example, the Facto Deposit does not allow early cancellation before expiration.

These products are interesting on two specific occasions :

  1. If we are sure that the yields of the deposits will go down in the time of permanence or that, at least, there is no prospect of interesting increases. In this way, by keeping the conditions fixed since its contracting, we would be enjoying an APR above the context of the moment.
  2. If we want to invest in a product and forget completely about that money because we do not need it.

The longer terms of the Facto Deposit present these returns:

Facto deposit for 4 years

APR 1.45%

With an investment of 10,000 euros:

  • Benefit: € 580.00
Apply for
Facto 5 year deposit

APR 1.66%

  • Benefit: € 825.00
Apply for

Medium-term deposits, the most interesting option today?

Finally, 1-year deposits are usually the most common and striking for investors of any profile:

  • On the one hand, they allow you to accumulate money for a considerable time.
  • On the other, it is possible to control whether the money invested will be needed at that time.

Currently these 1-year deposits are the ones that have a more interesting return if time-TAE is compared. In addition, the Facto Depot is the one that stands out in the current market.

Facto deposit for 1 year

APR 1.15%

With an investment of 10,000 euros:

  • Benefit: € 115.00
Apply for
Facto deposit for 2 years

APR 1.20%

  • Benefit: € 240.00
Apply for