Quite a nice idea to have a well-filled savings account.
A financial buffer provides peace of mind.
But on the other hand: that money does nothing at all!
With that low (read: no) interest, it actually only becomes worth less due to inflation.
Therefore a top 10 with tips to keep this money moving.
The most important tip we can give you is to always make sure you get good interest on your savings. This is just a free return that you will miss out on. A new account can easily be done via the internet. In the overview you see the highest savings interest at the moment, these are continuously updated. You can click directly to the providers for more information.
You can also use “all savings interest rates” to compare interest rates for other types of savings than a regular savings account. Think of deposits, saving with conditions, saving for a child and savings insurance. There you usually get even higher interest rates. We'll walk you through them below.
A deposit is an account where you keep money for a specific period of time. This means that you cannot access it, or at least not without paying a fine. In exchange, you will receive a higher interest rate. This benefit increases as you lock up the money for a longer period of time.
This kind of saving is especially good to use when you can spare the money for a good time, up to 15 years! Or when you want a higher interest rate because you know that you want to make a large purchase in a certain number of years, such as a house or retiring.
In addition to deposit savings, there are also savings accounts with additional or different conditions. This may be, for example, that there is a mandatory monthly contribution , or that there are other guarantee arrangements. It is important to carefully read and consider these conditions, but you often receive extra interest for this too.
A savings insurance is not an account, so there is no place where the money “stands”, as it were. It is really another financial product that you can take out with an insurance company. There are many forms and types of conditions, so it is important to read them carefully.
Characteristic points of attention are mainly that you have to agree on a certain term and that you cannot access the money invested in the meantime. Afterwards, your investment will be paid, the interest possibly already in the interim. During the term you do not fall under the deposit guarantee system and moreover: if you die as an insured person, nothing will be paid out! However, you can insure yourself for the latter so that this will happen.
The interest on savings insurance is usually by far the highest, but you have the most to think about carefully. It is a fairly complicated financial product, if desired, get advice from a recognized financial advisor or your bank.
Yes, you also have to pay attention to tax when you save. The Tax and Customs Administration is only too happy to get a piece of it. They do this from the capital yield tax . A difficult word, but in short it means that if someone has more than $ 30,360 in assets, or with a partner together more than $ 60,720 in total, you have to give a percentage over the amount above that limit each year.
Note that this does not only apply to savings, but that investments and real estate other than your owner-occupied home also count in that thirty thousand US dollars. You may, however, deduct debts higher than $ 3,000 (together with partner $ 6,000) from your assets to calculate the capital limit.
Conclusion: if you exceed that limit, it is smart to investigate alternatives to saving in order to avoid the yield tax. Below we give you a number of options. There are also savings accounts that do not count towards your tax assets: annuity insurance and bank savings.
Investing your money is always a topic that comes up as an alternative to saving. But although you may achieve higher returns on average in the long term, there is also the chance that you will lose. So you have to know what you are getting into. Therefore, read our article about starting to invest money carefully.
We will give you the most important tip: the best investment broker / platform has been Binck Bank for years in various elections. With the lowest costs, yet award-winning training and service. Request a free information pack.
But investing on the stock exchange, an official or unofficial such as crypto currency that you can also make money with, is not the only way to invest. You can also do this in ways that don't involve as much risk . For example, in your own home by making it more valuable and more sustainable. Or you can invest in real estate. Anyway, it is best to check our blog about investing without risk here.
Another way to invest in your home is to do something with the mortgage. Making repayments is an idea, which saves you money and reduces your monthly costs. It can be even more efficient with the current low interest rates to refinance the mortgage. You may then pay a fine, with your excess savings, but you will earn it back more than once. You can get free pick for you if this is something for you through hypotheekpoversluiten.com including free phone consultation.
A mortgage is a loan, so why not pay off or refinance your other loans? In principle, it is a shame to have savings while you pay much more interest on an outstanding loan, then it is better to cancel them out! Here too, refinancing is perhaps even more interesting. In the overview below you can see the latest loan interest rates, if you click on “all loan interest rates you can go to a specific page about transferring your loan.
You can also use your savings as starting capital for your own company. Could be anything of course, but the very idea scares many people off. Because where do you start? And what are you going to do? Well with the internet, it has become a lot more accessible to start as an entrepreneur. Earning money with your own website is very simple, you can put together a webshop or comparison site within minutes without any technical knowledge!