Which is the best Investing in bank deposits or investment certificates?

Investing in banks is by presenting bank deposits or bank certificates, investment certificates, and the dynamics of the issue differ from one bank to another, but in general it starts from 6 months to 5 years, and the period may also vary from one bank to another and from one period to another.

Many may confuse the matter and think that bank deposits are the same as investment certificates, but the truth is that they differ from each other, and this is one of the goals of banks to increase their investment. They provide different systems with different characteristics and advantages to satisfy all customers. Now let us get to know the simple difference between deposits and Investment certificates to determine which is the best for investment:

The certificate differs from the deposit in the duration of the certificate, the period of breaking it, and the interest rate.

1- The certificate cannot be broken before 6 months have passed, while the deposit can be broken at any time and the full amount can be obtained.

2- The interest rate on the deposit is lower than on the certificate.

3- A certain amount must be linked in the certificate, which may start from 500 pounds, and we do not find this matter in the deposit.

4- We understand from this slight difference that bank deposits are better than investment certificates.

Advantages of investing in bank deposits

1- One of the first advantages of bank deposits is safety, as the matter does not carry any risk, and this means that the possibility of losing your money is zero percent. On the contrary, you will take your money with interest after the expiration of the period, whether the return is monthly or quarterly.

2- You can obtain an investment certificate for any amount starting from EGP 500, knowing that its benefits are acceptable compared to other savings accounts.

3- All you need to obtain an investment certificate is your own card and a certificate from your workplace, and the certificate will be issued in a few minutes.

4- There are no obstacles in recovering your money at any time after 6 months have passed, but if you withdraw the money before the period has passed, the value of the interest that you obtained in the previous period will be deducted, but if you have already spent it, the amount will be deducted from the value of the certificate.

Disadvantages of investing in bank deposits

1- Determining the interest is one of the negative things in bank deposits, unlike other types of investment, such as real estate investment or investing in gold, in which the interest may multiply significantly.

2- The time period set for not withdrawing money is also considered a disadvantage because you will not benefit from the interest.

3- After the expiration of the period and the recovery of your money, you will have lost its value. We know very well that what can be bought today for a thousand pounds, after a few years, the value of the product will increase and the value of money will decrease. Keep in mind, in general, that saving money is not the right thing at all.

4- The interest value decreases whenever the value of the amount saved decreases, and this makes it difficult for small investors, and this is what makes real estate investment better and safer than investing in banks.