Key Points:
- The profit from time deposit investments is safer and relatively easy, but deposits are highly dependent on taxes.
- Difference between savings and deposits: Savings are used for saving money while deposits are investment instruments.
- To increase the profits from deposit investments, a strategy is needed. However, allocating funds wisely and choosing the right investment platform are the keys to investment success.
Want to start your investment journey with more confidence?
Investing in deposits could be a great choice for you if you're looking to save money. Time deposits are a way to store money for a fixed period of time. Unlike regular savings accounts, time deposit products usually offer higher interest rates.
Like any other form of investment, putting money into time deposits should be done carefully. Let's find out what kind of strategy you need to employ to maximize your returns from time deposits.
Advantages of Deposit Investment
Every type of investment has its own advantages. Before you start investing, you need to know what are the advantages of the instrument you are going to use. Here are some of the advantages of deposits that you can rely on as an investment instrument.
- Relatively Safe
One of the advantages of time deposits is that they are guaranteed by the Deposit Insurance Corporation (LPS). This makes deposits very safe and avoids the risk of default.
In addition, deposits are also relatively safe because they are not affected by market movements. Actually, this fact can be seen from two sides. It feels beneficial because the value of your investment will not decline much but also the profit value is indeed quite small.
This is what makes deposits a low-risk investment instrument. If you are a beginner investor and are still very conservative, then a time deposit can be the right choice.
- Bigger Interest
When compared to regular savings at the bank, time deposits have a much higher interest rate. Usually, the bank will determine the interest rate based on the value of the funds and the period of storage. You also don't need to worry because this interest rate has been determined from the beginning.
- It's easy
You need to know that investing in deposits is fairly easy. It's called easy because you only need to deposit money at the beginning. This is different from investing in stocks and mutual funds, which may require ongoing analysis.
This is also the reason why deposits are recommended for beginners or those who choose conservative investments. However, you still have to be careful and choose the right deposit to get the results as expected.
- More Effective Saving
Deposits are also a solution to save more effectively. Through this deposit, you can only withdraw funds according to the agreed period of time. So you can't just withdraw the money that has been deposited so that the value of savings will not continue to decrease.
Difference between Deposit and Savings
Let's understand more about the difference between savings and deposits as they are almost the same. The most basic difference lies in their flexibility. When viewed from this point, savings are more flexible to access than deposits.
When saving money in the form of a deposit, you cannot withdraw funds at will. You have to wait until the maturity date that has been agreed with the bank. This is different from savings where you can access and withdraw funds whenever you want.
Another difference lies in the interest rate. Deposits have higher interest rates than regular savings. The value of this interest varies depending on which bank you choose. However, overall, the value is greater than ordinary savings products.
The main functions of deposits and savings alone are very different. Savings are used for saving while deposits are investment instruments. You can use savings to save your emergency fund and deposits as a place to save money to achieve your future financial goals.
Deposit Investment Strategy for Maximum Profits
At this point, are you more interested in saving funds in the form of deposits? If yes, then you must apply the right strategy so that your deposit can generate satisfying profits. Here are some surefire strategies that you can apply.
- Choose the Right Type of Deposit
First of all, you have to choose the right type of deposit. The choice of deposit type will affect the benefits you can get later. In this case there are 2 types of deposits that you can choose from, namely Rupiah Deposits and Forex Deposits.
Of course you have to choose the type of deposit according to your needs. You also have to make sure that the deposit will help you achieve your financial goals.
For example, if you want to use a deposit as a short-term investment instrument then you can choose a rupiah deposit. The value of money invested is relatively low, namely 1 million and a tenor of one month. While the interest offered is high up to 5%.
However, if you want to get competitive interest and a long-term tenor, then a forex deposit is the right choice. There are 10 foreign currencies to choose from.
- Choose the Tenor Period according to your needs
Next, make sure you choose a tenor period that suits your needs. In this case, you also have to consider your investment goals, which is why it is very important to know what exactly your investment goals are and when you want to achieve them.
You also have to adjust the tenor period to the potential interest you can receive later. If you feel confused, there is nothing wrong with making calculations with the bank. From here you will know how long the tenor is right so that later the profit value can be optimal.
- Divide Your Deposit Fund
The next strategy that you can also apply is to divide the deposit funds. Let's say you have Rp100 million. Don't put all this money in one deposit with the same tenor period.
You can divide it with a portion of Rp50 million in a deposit with a period of 1 year and another Rp50 million in a 2-year deposit. If the deposit in the first stage is finished, then you can withdraw all the funds and then invest again in the form of a deposit.
This strategy can actually help you get bigger profits. The liquidity is also faster without any penalty. This will increase the chances of higher interest rates in the future.
- Extend Your Deposit Savings Again
The last strategy you can try is to extend your deposit. Extending your deposit can help you lock in your interest rate for a longer period of time. This will certainly allow you to get a much bigger profit over a long period of time.
Usually, banks will offer to extend your deposit automatically. There is nothing wrong with considering this option so that you can get more benefits.
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