Savings plan options in Spain
Having a savings plan in this day and age is very important and more often than not is overlooked.
Most people believe their banks are the only ones that can offer any kind of plan. However insurance companies offer great plans.
Why would you choose to use your insurance company for a savings plan:
- The main reason is that your bank only guarantees you up to 100,000 euros. Therefore any savings over this amount is at risk if the bank goes bust.
- The insurance savings plan will be fully guaranteed therefore it is a good supplement plan to have, as well as your banks plan. The old saying always holds true; “don’t have all your eggs in one basket”.
- Saving plans that insurers offer are very flexible. This means you can have plans which can be taken out after a certain number of years with no penalties. The usual amount of time is 5 years.
- There are plans which do not charge tax or fees on the interest made or on the gains of the initial investment. Banks on the other hand will always charge a fee on any gains that the savings have.
- The payment method on the insurance plan is also flexible. Monthly payments can be made by standing order. As well as extraordinary payments for any left over funds at the end of each year.
- The minimum monthly installment on a savings plan is 60 euros. This means that if you want to lower your monthly savings amount the minimum can be lowered to 60 euros and no fee is applied to do this.