What to choose a deposit or a savings account

  • By David Molnar
  • May 16, 2018
  • Comments Off

If you have some accumulated savings and would like to invest them safely, you have two good solutions. You can choose to make deposits or savings accounts. Which of these products will be better for you?

When is it worth to decide on a deposit?

Deposits are a very convenient and simple banking product. They are also the best way to achieve an attractive return with full security of investment.

Above all, however, they are usually characterised by slightly higher interest rates compared to savings accounts. Banks reward deposits and offer more attractive rates of return, as they ensure a longer life span of their deposits. The cancellation of a deposit involves the loss of interest, therefore no one who is not forced to cancel the deposit before the end of its term. As a result, the bank treats the accumulated assets as more durable and they look more favourably in the internal liquidity ratios of the bank – controlled regularly by the Polish Financial Supervision Authority (KNF).

Another advantage of deposits is their speed and convenience. Usually you can do it quickly online, and most of all (in relation to your savings account) as the deposit ends, you do not have to go to the branch to close it.

If you are looking for the best deposit offers at the moment – we recommend, for example, this ranking of deposits.

When would a savings account be a better choice?

The interest rates on savings accounts are usually slightly lower than on deposits, however, they have several advantages.

First of all, a great advantage of a savings account over a deposit is its flexibility. You can make a deposit once and then you can no longer change the amount. Meanwhile, money can be deposited into a savings account at different times, and interest will be charged on it immediately. This makes savings accounts the ideal solution for regular savings. If, for example, you want to save a certain amount of money every month for a long-term purpose, then a savings account will be the best choice.

On the other hand, the flexibility associated with savings accounts also applies to withdrawals. If you need to use the funds you hold in your savings account, you have access to them at any time without losing interest accrued until the withdrawal of the funds. All you have to do is consider a commission for withdrawing funds. In most cases, the first withdrawal in a month is free of charge, while the subsequent withdrawals are associated with high commissions.

Another advantage of savings accounts is that you can deposit quite large amounts of money. Usually, for the most attractive deposit offers there is a limit to 10000. If you have a larger amount, it is necessary to check the offer of savings accounts. They often bear an attractive interest rate of up to 100,000 per annum.

If you are looking for the best savings account offers at the moment – we recommend, for example, this ranking of savings accounts.


When will it be better to place your money?

You want the highest possible interest rate;

You want to invest your savings quickly and without obligation after the end of the term of your deposit;

When will a savings account be better?

you need flexibility – you do not know when you will need the money or you plan to add to your savings on a regular basis;

You have more than 10,000 to deposit and the deposit offers for such amounts do not seem attractive to you.

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