The biggest advantage of saving money in credit institutions is the possibility of earnings in the form of interest. The interest on savings may be fixed and variable. As in the case of credit operations, a variable interest rate exposes us to interest rate risk or the possibility of an increase or a decrease in the interest rate that will be applied to our deposit over a certain period. A fixed interest rate enables us to avoid interest rate risk. As regards interest rates, it should be noted that interest rates on savings are expressed on an annual level, the fact to be taken into account in our calculation of the expected earnings for savings maturities other than those of one year.
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