the model of financial application most used by UK citizens, the Savings account, was created in the mid-19th century and has since become popular among people looking for an easy and quick investment to achieve their financial goals.
Thus, the low risk of the savings account tends to be, still, the main reason for opting for it before considering other options to value their resources.
The savings account may have lost, a little, the UK residents's predilection. In part, this is due to the ease of access to information about other types of investments.
However, it is undeniable that the savings account remains strong among those seeking a type of investment.fast, easy and with low risk.
Asset security is also a sensitive issue for the most cautious investor profile.
But, in this post, we're going to break down everything you need to know about what savings accounts are.
That way you will be able to see if it is, in fact, the best investment option to reach your financial goals. Check out!
What is a savings account?
Savings, on a daily basis, is a term that can refer to the reserve of any amount you save from your income for a future purpose.
This can mean so much a immediate objective, such as the dream trip during the vacation period or even a significant reserve for your retirement.
Read too: What is private pension: all about this investment ????
But, in investment jargon, the savings account took on the same idea: a safe place and capable of generate profitability constant for anyone who made use of this type of means of saving.
When was it created?
The savings account, also known as a savings account, is a creation of the Caixa Econômica Federal, which dates back to the mid-19th century — more specifically, in 1861.
It was the time of Imperial the UK, still under the regency of D. Pedro II (which lasted until 1899).
In fact, this traditionalism remains one of the pillars that most promote the popularity of savings.
Demonstrates a safety and solidity that takes the more conservative investors to look for it.
It is clear that many updates and changes were practiced over the decades, but it remained as a practical, affordable and easy to save model and accumulate profitability for your equity.
It is no secret that savings income is low.
There are several types of investments, nowadays, that are equally easy to start investing as is the case of Tesouro Direto itself, for example.
So that you have all the information at hand and know how the savings account works for decision-making aligned with your goals and needs, let's understand everything about savings, below!
Does the savings account pay off well?
Currently, the savings income is 3.85% per year. Or, still, 70% of the CDI.
To make this easier to understand, imagine that you started by investing R$100.
In this way, in one year you will have accumulated R$ 3.85. That totals R$ 103.85 in 12 months.
Like this Yield is pegged to the Selic rate (and the profitability of savings will always be below it), it is difficult to see savings yield much in times of economic instability in the country.
Read too: What is a reference rate and its influence on investments
In other words: if this was not already the main attraction of savings, the UK residents crises could further scare off investors in search of a greater, and faster, return on their resources.
Also, the yield is calculated once a month, only, whereas many other low-risk investments are calculated on a daily basis.
And that, once again, makes the growth of their economies even slower.
How is interest on a savings account calculated?
For you to understand how the savings account works and how the calculation above is made on the income of savings, it is worth knowing more about the interest on the savings account, and how they are calculated: 70% of the Selic rate is considered, as well as the TR (the Referential Rate), which is currently zeroed.
That's why, more and more, the savings are shown to be more devalued than an unmissable option for those who will enter the investment world.
How to invest in savings, step by step?
It happens that, for many people, the lack of interest, time or even knowledge about the best options on the market lead them to the most practical model to apply their resources: the savings account.
So if you're still in doubt about what short-term investments are (or even for your retirement), but don't want to waste time, savings can be a gateway.
And with that, it is important to pay attention to the main steps of how savings account works so that you can quickly invest in this type of investment.
Check out the step by step, below:
- contact your financial institution and show interest in opening a savings account;
- in general, the banks require the submission of some documents, such as a photo identification document and proof of residence;
- many times, this process can be done entirely online, without the need to go to an agency. Check if this applies to the institution you intend to open your savings account for.
That simple. In a very short time, you already have your savings account to be able to invest your income and, consequently, reap the benefits of this good practice.
Where to start my savings account?
Leaving the technical aspect of the thing, there are those who intend to start investing but come up against something challenging: the beginning of savings.
In other words: the organization of your financial planning.
To help, we've put together some initial and practical tips for you to understand how you can slowly and gradually save to compose a fixed and stable income to invest in savings accounts:
- compare your income and costs, in the month, and identify ways to save (if little);
- assess your spending over the past few months and see where you've wasted your resources;
- identify some goals to use the resources to be saved (such as a trip, buying a property or even thinking in the long term, in your retirement);
- calculate how much you need to save each month and understand the deadline to reach your goals.
Ready! With that, you already have an objective and timeframe for reaching your goal, as well as the calculations on the table to understand how you can earn profitable equity over time.
It is worth noting that, in addition, you can transform your savings account into a base for entering other investments.
Because, as we've already mentioned, there are other options that are easy to invest and generate profitability much more attractive.
This is the case of the aforementioned Tesouro Direto, but you can also keep an eye on LCA, LCI and CDB, among other types of investments.
If you want to know a little more about them, or have already had experiences with these options in addition to the savings account, share your opinion with us in the comments field of this post!
HR Consultant UK can help if you have any questions about Savings account: how does it work and what is the income?
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