Saving is essential. Putting money aside is the best way to prepare for and achieve the projects that are most important to you, build a future for you or your loved ones, and handle any unexpected events.
Is a savings account really the best way to grow your savings?
To grow their capital, many people opt for standard savings products offered by banks, such as savings accounts. However, given the current context, a money market portfolio can no longer be considered the only investment solution.
Today, interest rates and returns on bank savings are at historic lows. They don’t even cover inflation. In other words, saving in an account no longer offers much at all. You’re actually losing money.
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This doesn’t mean savings accounts should be ruled out entirely. They are a good solution for:
- starting to save;
- investing your money in the short term;
- building up a financial safety net, with a cash reserve you can access at any time.
So, what should you do with your money? Where should you invest?
There are several solutions for investing your money, building capital and putting your savings to work, in order to finance projects over the medium and long term.
To identify those that best suit you, it’s important to take into account a range of criteria:
- the amount you want to invest;
- your risk appetite: generally, the riskier the investment, the higher the potential return – and vice versa;
- your investment goals: how will you use your savings?;
- your investment horizon: do you want to invest over the medium (3-5 years) or long term (more than 5 years)?
Investing in a fund is often the ideal solution for financing a project over the medium or long term: buying property, paying for your children’s education, preparing for retirement, etc.
By investing in funds, you accept a certain degree of risk on a portion of your capital. This offers potentially better returns on your savings, depending on the period for which your savings are tied up.
Investment funds are managed by professionals. They are extremely varied in terms of:
- asset classes (equities, bonds, etc.);
- countries and regions;
- business sectors;
- company size.·
Securities deposit accounts
If you’re looking to grow your savings by investing in funds, securities deposit accounts are another option. These are easy to set up, and let you place orders in real time, through your BGL BNP Paribas bank account.
The securities deposit account centralises all your securities (shares, bonds, etc.) in a single place, which you can access from Web Banking. Once activated, you’ll be able to select the fund or funds you want to invest in. You can also ask for support and advice in making your selections.
If you’re just getting started, the securities deposit account with scheduled investments could be the solution for you. It’s simple: you make a fixed monthly contribution, which is invested in funds by experts on your behalf.
Si vous débutez, le dépôt-titres avec investissements programmés constitue une solution intéressante. Son fonctionnement est simple : chaque mois, vous épargnez un montant fixe qui est investi par des experts, pour vous, dans des fonds.
A life insurance policy is another way to build your savings and access other benefits. By taking out a life insurance policy, you’re safeguarding your future and protecting your loved ones in the event of your death. You can use it to build capital up over time, while also taking advantage of tax benefits.
There are several types of life insurance policy:
- life insurance to protect your loved ones by growing your capital over time;
- life insurance to protect your loved ones and invest a portion of your existing capital.
With the OptiSave+ (1) life insurance policy, you can:
- protect your loved ones by guaranteeing a lump sum in the event of your death;
- gradually grow your savings over time;
- choose the amount and frequency of premiums you want to pay;
- when you take out a policy, you can choose either:
- one of several predefined investment profiles;
- or a personalised investment profile.
- Choose from a range of additional cover
- Premiums are tax deductible under Article 111 of the Luxembourg Income Tax Law (LIR)(2).
With the OptiLife² (1) life insurance policy, you can:
- combine your savings and personal protection goals;
- diversify your portfolio and choose to invest a portion in the General Fund with a capital guarantee;
- protect your loved ones;
- structure the transfer of your estate;
- take advantage of the security offered by “super privilege” (2) in Luxembourg.
Diversify your investments to secure a better return on your savings
It’s important not to put all your eggs in one basket. Think about diversifying your savings by opting for multiple financial solutions.
The advisors at the BGL BNP Paribas Invest Expertise Centre will guide you through your investments step by step and offer tailored solutions, taking your savings goals and investor profile into account.
Looking to grow your savings?
Our Invest Expertise Centre is available from 8.30 am to 6.30 pm Monday to Friday on (+352) 42 42 40 04.
Frequently asked questions
Taking zero risk doesn’t offer attractive returns. Investing in funds therefore always involves a certain amount of risk. However, BGL BNP Paribas offers a diversified range of funds, perfectly suited to different investor profiles. You should therefore opt for financial savings solutions that match your desired return and risk appetite.
(1) This product from Cardif Lux Vie is distributed by BGL BNP Paribas, Cardif Lux Vie’s insurance agency, entered in the register of insurance intermediaries under number 1996AC001. Tax deductibility varies based on the personal situation of each client and is subject to change. Subscription subject to conditions and approval of your application by the bank.
(2) Thanks to the regulatory framework for life insurance in Luxembourg, you benefit from enhanced protection. This means that if your insurer goes under, you’ll be first in line to collect any claims guaranteed by your life insurance policy.
The information shown on this webpage does not constitute a recommendation or investment advice. This webpage does not claim to provide an exhaustive description of the investment services to which it refers, nor of certain associated risks.
A decision to invest may not be taken solely on the basis of this document and should only be taken after careful analysis of all its characteristics and associated risks (as described in the “Investor Guide”) after having obtained all the necessary information. If you feel it necessary, BGL BNP Paribas would encourage you to contact professional advisors, including tax advisors.
BGL BNP Paribas S.A, with its registered office at J.F. Kennedy, 50, L-2951 Luxembourg, as a credit institution, is subject to regulation and supervision by the Commission de Surveillance du Secteur Financier (CSSF), 283 route d’Arlon, L-1150 Luxembourg.