Savings vs Time Deposits, Which one is More Profitable?

Savings and time deposits are the two main products that can be used by the public to store and manage funds in banks. In addition to being profitable because of the interest rates provided, we will feel safe because we have put our reserve funds in the right way and in the right company.

If you had to choose between savings and time deposits, which one would you choose? To avoid confusion, let's look at some points that can be considered in terms of the 'benefits'.

Initial Deposit

One of the requirements for opening a savings account is the initial deposit which will generally be a settled balance that cannot be withdrawn. The nominal also varies according to bank policy. The average ranges from 50-100 thousand.

Meanwhile, for time deposits there is no set balance so that the funds included in the deposit remain intact. Currently, there are many choices of time deposit products that offer a nominal value of less than 10 million. This product is suitable for those of you who are just starting a career and plan to set aside spare funds to be safe while staying profitable.

Flexibility

Funds placed in your savings account can be withdrawn at any time if needed. You can also withdraw funds through ATM facilities as well as mobile banking.

Meanwhile, time deposits have a pre-determined period of time, so some time deposit products that are withdrawn before maturity will be subject to a penalty fee. Find information related to time deposit products that provide facilities for administrative fees and penalties if you want to withdraw at any time so that your funds remain safe.

Interest Rates

The average interest rate for savings in conventional banks is set between 0.00-0.15%. Meanwhile, for e-deposit products, it is set at 2.85%.

Placing funds in BPR (rural banks) can also be a solution because the interest offered is certainly higher than commercial banks. If you want to manage your finances while getting higher interest rates, the BPR Lestari product can be the solution. The savings interest rate of BPR Lestari Bali as of July 2021 is between 1-5%. Meanwhile, the time deposit interest rate is 4-5.5%.

One of the highlights of BPR Lestari Bali is the DepositoGo product which provides flexibility for those of you who want to negotiate interest rates. Interesting huh? if you want to try it just click here.

To be sure, before deciding which product to use, make sure you have seen the benefits that you can get. Happy managing your finances!