3 Types Of Loans And The Benefits Of Each

Whether because of a job, illness or car or property, at some point in life many people have had to resort to some kind of loan.

There are many types of loans offered by banks and financial institutions, but do you know how they work and the benefits they can provide?

For some of these questions, here are three main types of loans to choose from that best fit your financial situation.

 

Types of Loans

Payroll Loan

money loan

It can be requested by workers with a formal contract, public servants or INSS beneficiaries (including withdrawals), and is released upon credit review. It works as follows: loan installments The latter are directly discounted from the monthly salary or benefit prior to the receipt of maturities. In this way, financial institutions are assured that they will receive the installments on time, reducing the risk. of default.

Because of this mechanism, the interest rates are much lower when compared to the personal loan, which is the main attraction of this type of loan. Before requesting it, you should consider that the installments will be directly deducted from your salary every month, which causes lower income availability. An outlet to cover unexpected expenses and, being used responsibly, may be a good option.

 

Pledge loan

money loan

It consists of taking some valuables such as silver and silver jewelry to a regulated pawnshop and receiving cash in return, which can be as much as 85% of the value of the pledged money. Credit analysis is required, but the object is pledged as collateral. It will be recovered after you have paid off. For this reason, its main advantage is the fast access to money, as it does not need guarantors either.

It is one of the fastest and bureaucratic loan alternatives. It is indicated that this option is used to urgently settle debts. And attention! This modality recommends some precautions. Choose a reliable pawnshop and pay in advance not to lose the pledged object. Normally, Savings Bank Federal agencies have their own pledge window in most cities. from the country.

 

Personal loan

Personal loan

It is common for banks to offer credit lines according to the profile and relationship of each client. The amounts are already pre-approved by the bank and have slightly higher interest rates than the payroll loan, but have minimal paperwork.

The possibility of having extra money falling into your account is tempting, but it’s not worth taking a loan, for example, to buy something superfluous, like a new phone. Since if you have expensive debts (credit card and overdraft), switching to a cheaper one, such as personal credit, is a good option. Opt for low-interest lines, such as the one offered by Just and other Athos partner institutions (you can see several offers in the comparator within the app).

The best types of loans for you will depend on your urgency, condition and financial situation. The most important tips are planning, information and installments that fit your pocket, so that debts do not accumulate and make your financial life unfeasible.

Have you ever needed a loan? What was the chosen type? Share your experience in the comments!

Instant loan without credit bureau

 

Anyone looking for an instant loan without Credit Bureau should make the comparison very carefully and avoid being punished with excessively high fees or inflexible contracts. With the house bank, it is not possible with a lower credit rating to receive the loan approval and thus pay open bills or purchases, make repairs or finance a vacation trip.

In the free financial market, every applicant can benefit from an instant loan without Credit Bureau and can choose an offer that fits all of their personal ideas and requirements. Favorable conditions are only one factor that makes a loan attractive and maintains the applicant’s satisfaction even during the term.

Compare the instant loan without Credit Bureau and see the benefits

Compare the <a href=instant loan without Credit Bureau and see the benefits” />

Free online comparisons provide an overview and let you know whether a loan matches the applicant in terms of price and performance. The best thing to do in the comparison is not only to check the interest rate and fees, but also to incorporate the framework conditions and get a complete overview. On the free financial market, a quick loan can be requested online by private donors or foreign banks and is approved without a credit check.

Therefore, unemployed and low-wage earners, the self-employed and consumers with financial problems have the chance of an advantageous instant loan without Credit Bureau in the desired amount. Without a comparison, a potential applicant will quickly make the wrong decision and find in the term that a reduction in monthly payments, a temporary deferral or earlier than agreed repayment of the total amount will put high costs on the agenda or simply be rejected by the lender.

An offer with a flexible contractual basis and the associated amortization of the repayment without high costs or the risk of rejection is to be preferred, since it can be optimally tailored to the needs and requirements of the borrower and can also be adapted to a new financial situation at any time during the term , The comparison is the best aid for a decision in which compromises are excluded and security is convincing.

This is how you secure an instant loan without Credit Bureau

This is how you secure an <a href=instant loan without Credit Bureau” />

If the financial background is not sufficient to hedge and you have a negative credit rating, the free financial market still offers an opportunity to borrow. Because with private donors or banks abroad, it is possible to choose different methods of hedging and to specify directly when applying if you want to secure your instant loan without Credit Bureau with real assets or monetary values, with capital-forming insurance or a surety, or a second applicant.

It is only important that the security shown is related to the loan and the amount matches the amount requested. Since you can apply for this loan directly online and do not have to make an appointment to speak to the lender personally, offers from abroad can be preferred without any problems and can be concluded at a particularly favorable interest rate and flexibility in the framework conditions.

The protection is given directly in the form with which you apply for the instant loan without Credit Bureau online and which you send to the lender online. Instead of auditioning at the house bank and accepting the safe rejection, consumers with poor or poor credit ratings are well advised on the free financial market and benefit from an enormous selection of loans with fast payouts and an unbureaucratic application process.

An online loan for everyone

An online loan for everyone

Not all offers are really serious, but little-relevant or too expensive, as well as dubious loans can be recognized very quickly by the free comparison. Consumers can also use their opportunity to search based on reviews from other borrowers and thus get a loan according to their ideas and from the reputable lender in the free financial market. An instant loan without Credit Bureau always brings advantages, since waiting times are excluded and urgent bills are paid immediately, and urgent requests can be easily fulfilled.

The free financial market offers many opportunities and opportunities to find the loan of your choice for any desired amount and with a different financial background and to waive waiting times thanks to the prompt processing and fast payment. If you search properly and decide on a cheap and flexible offer, you can always change the repayment during the term and do not have to expect additional costs here. Instant loans have long been established and shown as a financial opportunity that benefits all consumers and is also suitable for large sums.

Personal loan refusal: the 5 most frequent reasons

With a file that is deemed acceptable, it is entirely possible to be refused a personal loan by a banking establishment. And even if each lender follows their own rules for granting credit, it is clear that it is often the same reasons that motivate a negative decision. Here are the 5 most common reasons for refusing a personal loan.

 

Low credit rating or lack of history

credit score

In conventional banking institutions, a low credit score almost always leads to a loan refusal, when the borrower has sufficient income and is low in debt. As the lack of history also translates into a low credit rating, newcomers to the credit market are also generally refused their loan for this reason. In this case, the only solution available to the borrower is to apply for a loan without investigation in order to have a chance of obtaining financing.

 

Too low income

Too low income

Even if you have no debt, it will be difficult to get a loan if you have a low income, for example because you work part time. Indeed, as a general rule, credit institutions and in particular those granting loans without investigation require a minimum income of $ 1,200 monthly.

 

Too much debt

Too much debt

Even if you have a comfortable income, the lender can refuse you a personal loan if he judges that with this new commitment, your debt may be too high. Generally, banking institutions consider that the debt ratio should be between 32 and 40% of total annual income. In case of refusal for this reason, the only solution is to wait to be able to settle certain loans, preferably those with the highest interest rates, in order to reduce its debt ratio and thus be able to reapply for a personal loan. And even if you have a low debt ratio, a lender can also refuse you a personal loan if he finds on the bank statements that you are paying back a micro loan or a payday loan. It is therefore better to pay it off before applying for a personal loan.

 

A history of arrears

personal loan

When a credit institution studies a client’s file, it carefully examines the latest bank account statements. This is how he can check the amount of income received and the credits being reimbursed. But it is also also for him the means of detecting if the borrower has had arrears for the past three months. An incident of this type generally pushes traditional banking institutions to refuse a request for a personal loan. Some lenders who grant loans without investigation can tolerate a default on the period provided that besides that, the borrower’s record is good.

 

A recent change of employer or accommodation

personal loan

If you have been in the business for less than six months, if you have moved within the last three months, or if your checking account has been open for less than 90 days, you risk being refused a personal loan by the employer. banking establishment with which you deposit your request for credit. In order to grant a personal loan, traditional institutions such as private lenders generally require six months’ advance notice from the employer and the residence address, as well as a check account opened for more than three months in an agency of the Quebec.

Lenders do not just stop at the amount of income received to make a personal loan. They can indeed refuse the borrower’s request for other reasons and in particular if his credit rating is low, his debt high, that his history shows recent unpaid, or that his seniority in the business or at home is insufficient.

For whom payday loans without BIK?

A quick loan, also called an online payday loan, is the fastest way to get extra money for any purpose. If the bank has refused to grant you a loan due to an unstable financial situation or a negative credit history, and your family and friends cannot or do not want to support you financially, you can count on a loan without BIK – you will receive money in your bank account in 15 minutes, without unnecessary formalities without leaving home.

Responsible lending is one of the methods to properly demand our finances. This is known to all those who have fallen into a spiral of debt, as well as those who have ever had problems with paying off their loans, credits, installments and other liabilities. First of all, it is worth remembering to thoroughly analyze the offer of the institution in which we are going to take out a loan. For some, a low installment will be important, for others – convenient payment terms, while others are looking for loans for people with financial difficulties. And it is to such clients that financial institutions address their payday loans offer without BIK.

 

How does BIK work? Who verifies the creditworthiness in BIK?

payday loan

BIK, or Credit Information Bureau, is an institution that collects data on all loans, loans and installments we have taken. BIK reports are used by banks and many financial institutions to check credit history and assess our ability to apply for a loan. Negative credit history, late repayments of previous liabilities – all this means that our chances of granting a loan decrease.

 

Payday loans without BIK for everyone?

Payday loans

Some financial institutions meet people with difficult credit history by offering them payday loans without BIK . This option is mainly for people who have current liabilities and lack funds to pay their debts or to meet an urgent need, eg car repairs or buying necessary household items. For such people, a loan without BIK is a chance for money without additional formalities – even if their previous credit history was not very favorable.

 

New online payday loans offers without verification

New online payday loans offers without verification

It is worth adding, however, that providing such payday pay without verification is a risk for a financial institution, so you should be prepared for the need to pay the higher installment. Are you interested in a quick loan without BIK? Do you want to borrow money without verifying your credit history? See new payday loans , compare the conditions and choose the offer that suits you best. Certainly, it is worth supporting yourself with ready-made solutions for analyzing loan offers, eg with a loan calculator or a professional comparison tool, available online for free.

P2P Lending: why request a personal loan

Most of the P2P Lending platforms were born by providing personal loans, or loans with the direct provision of money to the Applicant, without the need for guarantees on his part.

This type of loan is suitable for the P2P mechanism because:

  • it has medium-small cuts, which lend themselves more easily to financing demand through the sum of many small fees paid by a series of Providers
  • the management of the credit criteria adapts to the use of statistical methodologies with respect to other types of loans and, therefore, allows the creation of significant economies of scale.

Today, P2P Lending is an established model that has proven to be able to provide significant amounts and thousands of loans, with the same reliability and security found in a bank – on the other hand, the activities are subject to the supervision of Banca d ‘ Italy – while assuring the Applicant important advantages.

P2P Lending is a simple, fast, transparent and advantageous model for everyone.

The 4 distinctive elements of the personal loan granted by the P2P Lending system are:

  1. Simple process, fast and close to customer needs
  2. 100% online delivery
  3. Tailor-made loan offer: each Applicant reimburses according to his / her creditworthiness / repayment capacity
  4. Transparency

 

1. Simple process, fast and close to the customer’s needs

  • The answer to the loan application and the estimate are in real time.
  • The Applicant’s documentation is made available through a simple “upload”.
  • Each Applicant is contacted for assistance in the various stages of the process.
  • Approval takes place in 24 hours with fundraising, digital signature and immediate disbursement.

 

2. 100% online delivery

online loan

  • Free from schedules, transfers and without the need to go to branches and / or agencies.
  • Advantages of information and transparency.

 

3. Tailor-made loan offer

loan offer

P2P operators evaluate the Applicant’s profile to define their creditworthiness, that is, the Client’s ability to repay the loan requested. The assessment takes into account several factors combined in statistical models. It is important that the P2P operator is able to build a risk-adjusted pricing model of the loans, that is, capable of attributing to the Applicant an offer consistent and proportionate to its creditworthiness and repayment capacity.

 

A reliable and sophisticated loan pricing model

The need to develop a reliable and sophisticated pricing mechanism, achievable with access to the Credit Bureau (CRIF, EXPERIAN, CTC) and with a rigorous and adequate internal scoring model, is dictated by the need to protect the interests of the Providers of the platform . The different rates therefore incorporate the variability of the creditworthiness of the Applicants, which is defined using the information obtained from the credit databases and the operator’s experience.

The pricing model described also allows customers who do not take into consideration the possibility of accessing personal loans to finance their needs to approach the request for financing. The Risk-Adjusted Pricing model and the disintermediation of the banking system ensure that the applicant is treated better than the corresponding treatment on the traditional market.

 

4. Transparency

personal loan

Transparency is a fundamental value of the P2P operators’ business as the business model itself dictates it.

For regulation and transparency, intermediaries are obliged to present the so-called “SECCI” form (abbreviation for Standard European Consumer Credit Information) or “IEBCC” (abbreviation for basic European credit information) during the offer phase. to the consumer) that from 1 June 2011, with the entry into force of Legislative Decree no. 141/2010 in transposition of the EU Consumer Credit Directive, replaced the previous documents. It is a standardized form that contains all the information necessary for the evaluation of the credit offer. In fact, in the SECCI form it is mandatory, among other things, to indicate the global cost of the personal loan (the APR- Annual Effective Global Rate);while it is not mandatory to include any insurance or optional products in the total cost.

For an Applicant the cost of a loan is made up of two components:

  • the interest rate (Nominal Annual Rate – TAN) which represents the remuneration of the money and of the risk assumed by the lenders;
  • the cost of the platform service.

Both production factors in the P2P model are purchased by the Applicant at market values, as they are provided by different subjects and not merged with other services.

To these components there are no additional costs and accessory products that are not mandatory and not required. The offer, in these cases, should not include early redemption costs which may affect the categories of most exposed applicants and should not include ancillary products, such as insurance or credit cards.

In the case of P2P Lending, the Applicants pay a market interest rate which reflects the remuneration requested by the Provider for the risk assumed. From this derives the need and uniqueness of P2P operators to use a “tailor-made” offer model, capable of attributing to the Applicant an offer that is consistent and proportionate to its creditworthiness.

How to compare loans and choose the best? Understand here!

After you think about it and come to the conclusion that you need to apply for a loan, it is common to be in doubt about which modality to choose. After all, there are modalities loans for every taste in the market.

How to compare loan to know which option is best for your pocket? Here’s how to do it:

 

Know which loans you can take

Know which loans you can take

Nowadays, the main loans available on the market are payroll loans and personal loans. Within these two choices, there are several lines of credit that can be adopted.

The payroll loan

The payroll loan

In most cases, people prefer to apply for payroll loans because their annual interest rate is usually lower. However, you need to know why this happens: in fact, in the payroll loan, the installments automatically come out of the pay stub of the person who borrowed money. Thus, there is little chance of not paying off.

For this reason, that customer is considered to be of lower risk. However, for people who already live on tight hearts, running out of a slice of their pay can be compromising. For this reason, a lot of planning is needed when it comes to taking out a payroll loan so that it does not damage your quality of life.

In addition, it is important to know that not everyone can adhere to payroll loans: only people with a fixed job and a formal contract, in addition to withdrawals and public servants, have a preference for Alidademodality. The interested party can also not have the name entered in the SPC or Serasa.

 

The personal loan

The personal loan

Personal loans, on the other hand, are another good possibility of credit in the market. There is a greater diversity of rates, depending on the credit line and the total amount required. For this reason, it is very important that the person who wishes to apply for a personal credit does extensive research on possible options and plans to repay the installments on time.

 

Learn how to compare loan

Learn how to compare loan

When making this comparison, some steps must be taken. After surveying the main proposals for your need, it is up to you to decide which one to choose. Here are the steps to consider:

 

Make a confrontation of the interest charged

Make a confrontation of the interest charged

Interest rates taken by financial institutions vary from agreement to agreement. This factor is something that should be taken seriously into consideration when making your choice.

In addition to the borrowed amount, one must keep in mind that the amount will eventually be returned to the lender in the future. And the responsible for this is the addition of interest. The identification of those proposals that bring the lowest rates is therefore quite significant in your pocket.

 

Pay attention to other fees

In addition to the interest rate, do not forget to know what the other amounts charged by the institution are. For a good overview of the proposal, ask the manager what the cost is. total effective amount (CET) of that loan. This sum will include insurance prices and taxes.

 

Do not forget the form of payment and installments to assume

loan payment

It is crucial to consider the forms of payment to close a loan agreement. This is because, like any other contract, these clauses must be respected; otherwise the person’s name may be negated and he will lose credit on the square.

It is therefore essential to have a real sense of what your financial situation is and how much money you will have each month to settle your debt. Make a proposal to bank managers and close the deal only with the institution in which you are able to settle this debt effectively, without compromising much of your monthly income.

Loans may not be the best solutions for your financial life, but they are necessary ideas in some situations. Therefore, you need to know how to choose it and ensure good planning so as not to curl up later.

Dental credit with payment in installments

Dentures are often very expensive. This applies regardless of whether entire prostheses, larger bridges or just individual crowns are required. Depending on the material from which these parts are made, the cost can be either several hundred or even several thousand USD. For this reason, many patients wonder how they should finance their urgently needed dentures.

They will not always have the money on the high edge or have thought about taking out private dental supplement insurance in good time. If they do not want to do without dental treatment altogether, they often have no other option than to look for a suitable dental loan with payment in installments. Statutory health insurance only partially contributes to the costs of dentures.

Dental credit with installment payment from the dentist

Dental credit with installment payment from the dentist

If the patient notifies his dentist in good time that there may be serious problems in paying the cost of the denture, the dentist can offer direct support in many cases. This is especially true if he works with a partner bank that can arrange a cheap dental loan with installment payments if necessary. Often these loans are even completely free of interest. However, this only applies to a term of up to 6 months.
In certain circumstances, the dentist may also agree that the patient will pay the cost of the denture in installments. This is most likely to be the case if there is a longstanding relationship of trust between the doctor and the patient and the patient has so far proven to be reliable.

Installment loans from the bank

Installment loans from the bank

If you have a good credit rating and do not want to go through the dentist, you could also try to get a dental loan with payment by installments from your house bank or another German bank. The most important requirement is a positive credit bureau information and a regular income. The latter should ideally be so high that, in addition to paying the monthly repayment installments, there is still enough scope for subsistence, major repairs or other important expenses. The bank will draw up appropriate household bills here and adjust both the amount of the installments and the length of the term to the income of the customer. A bank loan is generally freely available and can also be used as a dental loan with payment in installments.

Immediate treatment without delay

Immediate treatment without delay

All credit options have the great advantage that the dentist can start treatment immediately and does not have to wait until the patient has saved the necessary amount of money. In addition to an installment loan, the overdraft facility on the current account could also be considered as a dental loan.

Loans for companies in difficulty: anti-crisis financing

The need for liquidity exposes companies, especially small businesses in difficulty, to the risk of having to pay high disbursements in an attempt to find the necessary money to overcome the moment of crisis.

A problem which, due to current problems, has become acute and chronic for an increasing number of companies that are increasingly proven from every point of view, with an increase in the fragility of the financial structure. To solve this kind of problem, the request for loans does not always become the solution to follow , both for the difficulties that a company in crisis has in obtaining loans, and for the weight of the overall interest rates applied.

However, this is a problem that can be overcome both thanks to European funding , normally provided by its regions, and through specifically created “anti-crisis” funds.

 

Loans for companies in difficulty: starting from revolving funds

company loan

One of the most important revolving funds was established (and is managed) by the Astro Finance , to which SACE’s intervention is added, which acts as a guarantee, increasing the chances of accessing credit, and above all at more advantageous conditions . These are loans with a duration of over 12 months, designed to breathe new life in a time of difficulty.

Numerous revolving funds are also allocated to the various Regions, but it is important to note that the possibility of using funds for cash rebalancing or to support the strengthening of the financial structure is not excluded in the regulation.

 

Loans for small businesses in crisis from the private banking system

Loans for small businesses in crisis from the private banking system

The ABI has been asked several times to offer concrete help to the difficult moment experienced by the credit sector. Therefore various initiatives have been activated to facilitate access to credit, even to those companies that do not qualify for participation in one of the active calls intended specifically for the production or services sector.

After the moratorium on mortgages , the time has come to allocate special funds, partly usable also for liquidity difficulties, as happened recently with the distribution of 400 million dollars from the EB and related intermediation by the Best bank. To be updated on business initiatives, you need to look in the ABI section, under “business support”.

So easy is the loan process with us.

It is incredibly important to us that our product is transparent so you have no doubt what you are going for. In addition, it is important to us that our loan process is easy and simple for you who wish to take out our loan.

Our loan process

Our loan process

Here we will briefly describe the loan process we have at Twin Rider.

It all starts on our website

You can find our entire loan process at Twin Rider, where you can also handle the entire process from loan application to approval of your loan.

Find loan amount and loan period

The first part of the loan process itself deals with your choice of loan amount and loan period. On our front page you can easily calculate what the costs will be in different loan scenarios with us. We advise all our clients to be clear about their needs and repayment options before the loan is taken up.

Registration with Twin Rider

In order for us to pay off the loan with you, you must fill in a number of information about yourself. Here is a simple registration with Twin Rider, where you simply fill in this information:

  • Social Security number
  • Bank details (registration and account number)
  • Phone number
  • Monthly income
  • expenses
  • Email
  • Password

When you have completed this step, you will get a profile from Twin Rider, which will primarily be used for the current loan, but this can also be used in the future.

Sign with NemID

Now we have reached the last part of the loan process where you have to sign with your NemID. This step allows us to confirm who you are and to issue the loan to the right person. This security is created both to increase your security when you take out the loan and to enable us to make the necessary credit rating.

Now the entire loan process is complete and you will have received your loan application within minutes. If you are approved, you already have the money in your account within two business days.

Should doubts arise?

Should doubts arise?

Then our customer service is always ready to answer any questions you may have during the loan process. 

That’s why it’s worthwhile to deposit our money

The central bank base rate, which is currently 0.9%, has been steadily declining in recent years. Correspondingly, the interest rates on loans and deposits decreased. Bank borrowers have been favorably affected by this interest rate reduction process, since the burden of repaying a loan is already much lower. But if we want to start with our money saved, we have to face the fact that we generally have to be satisfied with a deposit rate of around 1 percent. We look at the situation in the term deposit market and show that despite the low central bank base rate, deposit rates above 2% can be found.

 

If we have saved money

piggy bank

or suddenly we get a significant amount, we wonder what to do with it. Take $ 1,000,000 as an example. This amount is not enough to make buying real estate today the best investment. But it’s too much for one million for us to keep it at home in the drawer in the socks.

We receive several comments under similar articles that “I will never put my money in a bank again, but rather keep it at home!” But what happens when a burglar takes our treasured money? It is clear that we have money in a bank. It is also important that the National Deposit Insurance Fund pays compensation for the money we deposit in deposits in the event of the banks becoming insolvent. The indemnity is equal to or less than $ 100,000 per depositor and per credit institution, ie slightly more than $ 30 million.

Thus, term deposits remain the safest form of savings, and when you make a deposit, you know in advance how much interest you will receive at the end of the term. It is worth comparing deposit offers with a calculator .

 

Interest above 2 percent, even unconditionally

earn money

Looking at the offers of several maturities, we can see in the calculator that you can get the highest interest rate for a 12-month or 24-month deposit by choosing BNP Paribas A Deposit For Future . BNP Paribas offers a 2.40% interest rate on a 24-month maturity period when depositing fresh money . The bank will treat as fresh money the amount that came from sources outside the bank that were not committed within 90 days prior to the deposit date. The calculator calculates that by depositing $ 1 million this deposit can increase our net savings by $ 38,279 over two years.

BNP Paribas offers a good opportunity even if it is not fresh money , as in this case the interest on the Standard deposit will be 2.30%. This translates into a net profit of $ 36,670 over two years. It is interesting that there is no significant difference, the bank gives almost as much interest without meeting the fresh money condition.

It is also important to know that BNP Paribas will pay 30% of the interest in case of a deposit break if we wish to withdraw money within 90 days of the deposit. Clients can manage their deposits online and any transaction can be made online (either by phone or in person) and deposits placed here are covered by the French Deposit Guarantee Fund up to $ 100,000.

 

What other options are there?

deposit money

At Marble Bank, we can also deposit our money at an interest rate of over 2% on the Special TBSZ deposit , which currently yields 2.25% interest for a 12-month term. This deposit can only be made through a Long Term Investment Agreement (TBSZ) account, which provides you with interest-free or interest-free tax and health contribution exemptions.

It is also worth mentioning that the interest rate on the Marble Bank Variable Deposit is linked to the MNB base rate , so that with the change it may decrease or even increase the interest rate of the deposit over the term. We currently expect a 1.65% interest rate on this deposit, which gives a net interest of $ 13,035 at the end of the 12-month period, calculated at $ 1 million.

You can find combined deposit offers at several banks. For example, an option where you need to buy a unit or Hungarian government bond for twice the amount deposited in order to get a high interest rate. An example of such an investment offer is CIB’s Gold Deposit , where the bank gives a 3% interest rate on the deposit portion, which is outstanding for the 2-month maturity. If you choose this option, you will receive a net interest of $ 2,930 over a 2-month period on the deposit portion of the deposit.

In the case of offers combined with an investment certificate or a bank bond, or even life insurance, it is important to know that their yield may vary depending on the yield of the investment instruments in the fund or bond. The maturity of bonds and mutual funds required as a condition of the special interest rate may be several years, which can significantly exceed the maturity of the deposit part. It is advisable to invest our money in such combined investments only if we are fully aware of the characteristics of the assets they contain.

 

What are the deductions?

What are the deductions?

We should always deduct the current 15 percent interest tax from the gross interest rate unless we deduct the money from TBSZ. Interest income also requires a 6% health contribution (eho). An exception to this is government securities issued in $ in the $opean Economic Area (hence Hungarian). We can save this money only if we open a long-term investment account (TBSZ) and our deposits bear interest thereon for at least 3 calendar years.

We can then save the interest tax on a TBSZ account. At TBSZ, after 3 full calendar years after the account opening year (collection year), 10 percent of the interest is deducted from tax instead of 15 percent, and after 5 full calendar years, the interest tax is 0 percent.

That is, if we open a long-term deposit account in 2016, 2016 will be the start year, ie the collection year. Savings can only be credited this year (31 December 2016). From 2017 onwards, you will not be able to make or withdraw payments, you can only change the composition of the savings on your account. For example, if the amount is only held for half a year, it can be re-tied to another form of deposit. However, neither the amount originally deposited nor any interest that may be payable in the meantime may be charged without breaking the account. We can fund you for the first time on December 31, 2019 without losing your tax deduction (this is when the first 3 full years of savings are completed). At this time (December 31, 2019), the bank will deduct 10 percent interest tax.

 

If you keep the money in your account

credit loan

For 5 full years after the starting year (31 December 2021, as in the example), you will be able to charge the full interest without deduction. On the go, we can transfer our TBSZ account to another bank if they get a higher interest there, and we can launch a new TBSZ account every year.