2023-04-20 18:57:00
Meanwhile, in 2015, when interest rates were much lower, this ratio was 45 percent. — according to the data of the Bank of Lithuania.
— Now that the financial situation in the country has changed, people naturally have different thoughts and considerations – why should you change your negative attitude about it? Maybe they got used to the fact that interest rates were even negative for a long time, or maybe they don’t get the information about the need to invest savings that are constantly devaluating, says Sigita Strockytė-Varnė, an expert on personal finance at SEB Bank, in a message sent to us.
Read more: Banks are increasing interest rates on deposits
Term deposits are gaining in attractiveness again
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“We are seeing a very rapid increase in the number of new fixed-term contracts. For example, in the last winter month of February, the number of term deposits was 6.5 times higher than in any average month last year. The numbers are growing, but they have not yet reached the level we had in 2015, says a financial expert at SEB Bank.
Meanwhile, Marius Jansonas, president of the Association of Finance and Credit Management, says that other numbers speak for themselves. Of the 21 billion euros in bank accounts, only 20 percent. are invested by residents on term deposits.
“Even bonds…”
“Well, earning 200-300 euros a year from 10,000. Euro is small but still money. But in order to earn money, they must work. Inflation makes those 10,000, let’s say, 7,000. We haven’t seen inflation like this in some 30 years. And now people have to realize that money loses its value, so they have to look for at least that 2-3 percent. earnings. Look for where they could put their money. They are, after all, at least less profitable, but guaranteed bonds of the State Treasury,” says Marius Jansonas.
Children can be… a good investment
According to the data of the Lithuanian Banks Association, when calculating the financial literacy index, it turned out that as many as 68 percent. people keep money in their home wallet, i.e. in the proverbial sock.
Sigita Strockytė-Varnė says that in this case the money is “buried” because it simply loses value every day.
— You can choose term deposits for 3-5 months and interest at 1.5 percent. There are also accumulation deposits that have no term and also bear interest. The more so that keeping cash at home is not always safe – says the financial expert and points out that representatives of the older generation are often able to advise younger family members on how to save and invest.
“They knew what the best investment was – you have to ‘put in the children’. Give a good education – send them to good vocational schools or universities. Children and grandchildren will grow up, get a good specialization or start a business. They will earn enough money, and then they will “repay their investments” by helping their parents or grandparents financially, stresses Sigita Strockytė-Varnė.
Read more: You take the money to the bank and you get… “thank you!”
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