Savings – sensible savings checklist in 2020

How to save in 2020? You can achieve high interest and sensible savings with a bank, insurer or employer in many ways. Get maximum return from your savings, even if the interest rate is temporarily lower. See the savings tips and ensure a top interest rate on your savings. Compare the highest savings interest rates from banks. Don’t settle for less return. Save at the highest interest rate, but safely and also change savings banks to make a higher return on your money.

Wise savings checklist for a top interest rate in 2020

Saving gives you the opportunity to be better prepared for the future. A washing machine can break, the roof can leak, the government can abolish all kinds of facilities. Those who save are less vulnerable to the consequences of such unexpected developments. What should you pay attention to to save wisely with optimal returns? We make a few suggestions:

1. What is sensible saving?

First, find out what you can put aside each month. Try to gain insight into what you have left over each month and estimate how long you can put a certain amount away in a savings account or deposit. Create a personal budget with all income and expenses. Don’t put all the money away for a long time if you already know that you will need the money again soon.

2. How do I choose a safe bank or insurer?

A safe bank is a bank that falls under the deposit guarantee scheme of the Dutch Bank. Safe then means up to an amount of up to 100,000 euros per person at the same institution. This bank guarantee is important. Consider, for example, DSB Bank: anyone who had deposited more than 100,000 euros with this bank or saved through a subordinated deposit was not covered by the guarantee scheme, but had to submit a separate claim to the bank’s trustees. Only once the entire estate of the bank has been drawn up and distributed will it become clear how much of their money they will get back. So save safely. An insurer is not covered by this guarantee scheme of the deposit guarantee scheme.

3. Put away savings for a long time or not?

There are all kinds of savings accounts where you can access your money directly. The 10 banks with the highest savings interest rates in our country can be found in the article: highest savings interest rates at Dutch banks. Compare and choose. But if you can leave your money for longer, you can also opt for a savings deposit. Many of the banks mentioned earlier offer a savings deposit. The advantage of a savings deposit is that you receive a guaranteed interest rate for the entire term. Finally, there are savings accounts with restrictive conditions. These are, for example, accounts into which you are obliged to deposit money regularly, or accounts into which you must leave your money for a longer period of time. If that appeals to you, then you choose it.

4. Promotional interest rate as the highest savings interest rate, to do or not to do?

Whether you save or borrow, there is often a promotional interest rate. This often means a savings interest rate that is high for some time and then drops. When borrowing, we see the opposite phenomenon: in the initial period you pay a relatively low interest rate, but after some time it goes up. The fact that there is a promotional interest rate is not a problem at all, but you do need to know about it. Then you can benefit from the favorable interest rate for the period in which the promotional interest rate applies and then switch to another bank.

5. Compare the interest rates of banks

You should carefully compare the interest rates between banks. There are banks that only give 0.5% interest on the same savings, while at another bank you can get five times as much. Besides that, it is important to regularly monitor developments. Compared to 2008, most interest rates have been halved. If the savings interest on your account decreases, take action. A savings account can easily be opened via the internet. This way, especially if you have not tied up your money for some time, you can easily transfer your balance to another bank. Waiting and doing nothing is a thing of the past and will cost you a lot of money unnecessarily.

6. Spread savings over multiple accounts

The bank guarantee for savers, the deposit guarantee scheme of De Nederlands Bank, means that up to a maximum of 100,000 euros in savings is guaranteed per institution and per person. If you are with your partner and you save on a single account with ABN AMRO, your savings are guaranteed up to a maximum of 200,000 euros. If you have more savings, you would be wise to open a savings account elsewhere. The bank guarantee also applies here, provided that it is not the same bank. You can usually open a savings account for free, but it is certainly good to look at the conditions. Some banks require that you also have a current account, but this is mainly required by the larger banks in our country, such as Rabobank. There are many banks on the internet where you can open a savings account safely and free of charge. For example at MoneYou, part of ABN AMRO, or the Leaseplan Bank.

7. Buy bonds

Bonds can give a nice coupon interest. But bonds also have much more risk. Bonds are investments and are therefore not covered by the savings guarantee of the Dutch Bank, the deposit guarantee scheme. Moreover, the troubles with countries such as Greece indicate that it has not become easier to choose the right bonds. Yes, Dutch bonds are safe, but the return on them is also low. Always pay attention to whether you are dealing with perpetual bonds, the perpetuals as a perpetual bond. These bonds provide a higher compensation, but are often subordinated. If such a country or company goes bankrupt, you will be at the back of the queue with creditors and you will have to see whether you will ever see your money again. So save safely at a safe bank in the Netherlands with a Dutch banking license, I would say.

A few forms of savings at a glance

You can choose from various savings options:

1. Regular savings account

You can opt for a savings account with restrictive conditions or an immediately withdrawable account. If you agree to certain conditions, the interest payment is often higher, but you are also less flexible. With an immediately withdrawable account you retain complete flexibility.

2. Youth savings

This way you save for your children or grandchildren. You can also arrange it so that the child saves himself. This is the way to build up assets for later, for studies or for other things that are important to a child.

3. Bonus savings

Bonus savings means that you receive a bonus on the basic interest rate if you leave your money for a certain period of time.

4. Internet savings

You open a savings account online and usually receive a higher interest rate than on a regular savings account. After all, the costs for the bank are lower.

5. Save deposit

You store your money for a longer period of time in a savings deposit at a higher fixed interest rate. Fixed for the entire period you choose. There are many terms available for a deposit. Interim withdrawal of money is usually not allowed or subject to a fine. The fact that you receive a higher interest on a savings deposit is not the case with every bank. So keep an eye on the interest rate and compare the different savings offers.

6. Sustainable savings

Sustainable means that the bank invests your savings in all kinds of sustainable projects.

7. Save climbing interest

With a climbing interest rate, you tie up your money for a certain period, while the interest rate increases annually and therefore climbs. You know in advance what you will be reimbursed. The longer you leave the money in the account, the higher the savings interest.

8. Bank savings

You save on a blocked account at the bank and enjoy tax benefits. Banksparen is known for its transparency and relatively low costs.

Save wisely in 2020

Anyone who saves must therefore be active these days. Be sure to keep track of developments via the internet and act as soon as possible and when it suits you best. This makes a top interest rate achievable for everyone. A bond can also give you a top interest rate. Something for you or maybe the savings account? my view on