These Are The Difference Between Deposit And Stock Investments


Banks usually have fixed deposit rates adjusted to the tenor and deposit value. Generally, around 4-7% and deposit rates are usually higher than savings rates. Deposit interest rates follow the country’s benchmark interest rates. So it’s no wonder that income from deposits tends to be constant, even the changes are minimal every year. It’s appropriate for you who want to play safe, stable because the risk is low. Additionally, you can visit the website if you want to learn more about Como investir na bolsa de valores .

For example, you deposit money into a deposit product of $ 20 thousand at 7% interest per year. Then your income from the investment is $ 1.4 thousand. If you take a tenor or maturity of 2 years, for example, it means a total income of $ 2.8 thousand. That is, after 2 years’ maturity, you can withdraw the deposit funds along with the interest of $ 22.8 thousand. It’s still dirty, not yet deducted by a 20% deposit tax.

In contrast, profits from stock investments fluctuate, depending on market movements and the performance of the company whose shares you buy. For example, you have $ 20 thousand and buy mining company shares at a price of $ 1 per share, then you get 200 thousand shares or 200 lots (1 lot = 100 shares). If in a year this stock increases in price by $ 0.20 and becomes $ 1.2 per share, then you will pocket a profit of $ 40 thousand. It’s tempting, isn’t it?

This advantage is certainly far greater than deposit interest income. But the lucrative benefits are outweighed by the risks. The calculation is if the assumption is the stock price rises. If the stock price goes down, instead of profit, you will be stubborn to erode the invested capital.

Understand the Risks and Manage Them Appropriately

The decision is yours as a potential investor. If you are the type of person who likes to ‘play’ safe or just starting and learning investment, you can choose deposit products as your first choice of investment. However, if you are the type of person who likes to take risks, investing in stocks is suitable to be tested.

One thing to remember, there must be a profit and loss investment name. Understand the risks of each investment instrument and manage it in the right way.

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