Basics for savings

Learn the basics of personal savings and how to use compound interest in your favor. Over a longer time period personal savings can provide you with a very nice steady stream of additional income.

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There are seven key actions when it comes to choosing a perfect personal savings model. This simple guide is a short summary of the most important actions. You should be able to find an appropriate bank and personal savings product which best suits your needs. The goal is to get as much interest as possible with the minimum amout of risk possible in the shortest time period.

1. Financial analysis

In order to begin saving money, you have to analyse your own income and expenses. Any extra/surplus funds you may find is a good start. During the crisis and harsh living conditions, looking over your expenses can be difficult. Experience teaches us that there is always room for rationalizing costs, at least by cutting down some of the unnecessary expenses related to your household. Usually, people have some other sources of income such as inheritance or rent money which needs to be managed as well. Remember, the first step is to know your personal financial status that you may plan for the future.

2. Choose a perfect personal savings for you

The next step, after you have determined the amount at your disposal, is to find the perfect combination of savings. There are several different banking products of personal savings available in Croatia. Depending on the desired type of savings and availability of funds, you can generally choose your preferred savings model between on-term, term, rent or open savings. For more information, read our article on different types of personal savings.

3. Choose the optimal maturity date

For how long can you afford to deposit money in a bank? Think carefully when you might need it back. Banks generally offer three types of term deposits: short-term, mid-term and long-term deposits. Short-term period is considered within one year, mid-term period can be two or three years while long-term deposit are set for a period of four, five or more years.

4. Choose the interest rate

Fixed interest savings rate depends on the amount of savings deposit and maturity period and is arranged as a fixed. Variable interest savings rate can change over time, according to the economic cycles and changes that are happening on a local banking market.

5. Choose the currency

Each currency has it specific characteristics, which should be taken into account. Some are more volotile than others and others tend to be more stable. Some are more attractive for the banks which then in turn give higher interest rates. For more information check out our database:

6. Find an appropriate bank

If you're planning to catch a good offer for personal savings in Croatia, next thing you need to do is to search for a bank that will match your desired terms. The easiest way is to use our bank list and afterwards, a bank locator to find their nearest office. Finally, be sure to read the Croatian banking market analysis for 2014.

7. Make the deal

You'll have to go personally into the nearest bank office and sign the contract. Nicely done!

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