Building savings, similar to supplementary pensions, benefit from the support and at the same time from the appreciation of the savings bank. The funds deposited in this building society are fixed at a fixed annual rate, which is currently 2% in most cases.
If the building savings do not have the support (or if the client does not require it), the client should be able to regularly or irregularly invest funds, which would be valued at 2%. The fee would be reduced by the fees that the client pays the fee for concluding the contract and the fee for keeping it here. The resulting return to the client would be significantly less than 2%. We can achieve such a low return even in money market funds. Here you can expect similar or even better evaluation. These funds have minimal risks. In terms of liquidity, they are better than building savings, because we can retire at any time. Sttn support will take care of interesting evaluation. When connected at 1,500 K msn for about 6 years, about 130,000 K will be saved.
Graph: The bottom of the building block and its composition. (Spoen 1,500 K msn for 6 years)
The chart shows that the current support exceeded the volume of letters written. We will be paid a total of 16,200 K on the support, when this year will be only 6,600 K.
It would be good to take a look at the fees paid, which are not reflected in the chart. With a duty of 130,000 K, we will pay 1% of the duty for the conclusion of the contract, ie 1,300 K. According to we will pay the fees for keeping here. You will be e.g. 1 645 K. In total, ns castles will cost 2 945 K. Fees, years and support nm will not reveal much about the suitability of the investment. Let’s look at an effective year. In this case, it would be 5.8% pa After six years of spoons, we get paid as much as we would get when spoons with an input of 5.8%
The old conditions of support were suitable for clients. On the one hand, it only took 5 years to save, and on the other hand, the state support was 25% of the deposit. Now it is only 15%. Even years, rates from building societies are worse than a few years ago. In the following years, market rates gradually decreased, and building societies also reacted to this. Today, the rate for 2 years is 2%. Two years ago, the rate was 3% for years. These suitable conditions meant that the effective year was over 10% pa
You can find more about the development of hypotenches here
It was true that the building compound is the most important product on the market
Only some equity funds were brought in, when they had a lot of money. The long-term average appreciation of the stock market is somewhere around 10% pa Today, it is argued that building society is the most profitable product on the market, it is not entirely true. It is possible to compile portfolios that will be represented by the event and where you can expect at least the same good value. The problem is that we are not sure that we will earn more. My yes, my no. The portfolio, which contains stocks, pins far you risk not building savings. Therefore, it is claimed in building societies that it is the most profitable among conservative products. The stated effective input of 5.9% applies to this particular example. Other uses of the building coupler will have a different degree of load-bearing capacity. The effective year will fall if we save more than 20,000 crowns. This is the bottom when we get a little support at 20,000 K. He gave the pensions we invest, there will be no support, and we will actually save only 2% pa for the year. This results in a decrease in the effective year. It will be somewhere between 2% and 5.9% ron.
The effective year thus decreases with increasing sleep time. If we want to significantly extend the connection period beyond 6 years (you to 10 years), the connection will not be so suitable. Although we will still receive state support and years from the building society, but the ratio of support paid to the total amount of money will change. After 6 years of savings, we have saved about 130,000 K. In the seventh year, we get a year of 2% (that is 2,600 K) and a total support of 2,700 K. We see that the volume of support is compared to the volume of the year. In the coming years, the new year will prevail over state support. This results in a decrease in the effective year.
It is ideal to use the building connection only for a minimum period (6 years). After this time, it is good to choose the same resources and try to find a suitable way to save. You bonds open under funds. Zalome gave a building society, for which we draw state support. The coincidence of this procedure is that bond funds can only appreciate the value of invested funds if we let them be valued by a building society for 2% pa The effective year would fall if we saved a very small amount. Teba 200 K msn. Then we have to deal with the fact that one msn deposit does not even cover the fees for keeping here.
How to succeed and spend as much as possible
The building savings can thus be used for a one-time deposit. We can insert at once nap. 120,000 K (that is 6 krt 20,000 K). We will receive the pipsan years from this deposit and we will receive state support. The current support is expected to increase an effective year and we will get around 3.5%. Bad for the client, whether this way of investing is interesting for him or not. An effective year of 3.5% is interesting for a very conservative investor who could only invest in a money market fund. An experienced investor would probably find a portfolio that would be able to value the funds better.
This investment procedure would be applicable e.g. clients who have finished one building connection have been paid pensions and want to continue in the next cycle. They can pelt pensions from one spoen to another and secure support for a given period of time. This procedure can be repeated indefinitely.
Personal and family finances
1. dl: Bank deposit as a spoc product