What are structured deposits?

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If what you are thinking is that structured deposits are like the traditional ones that you had contracted until now, surely you have been wrong. Not surprisingly, they have substantial differences, since they are totally different investment models. To the point that they have very defined characteristics that make them pass as products with authentic investment personality. Sea cual sea el caso, será otra de las opciones que tengas para rentabilizar el ahorro de ahora en más.

If structured deposits are distinguished by something, it is because you do not commit the invested capital as long as you respect the terms to which these financial instruments are directed. Not surprisingly, each of them has a due date, whatever the financial asset that composes it. With different periods so that they can be adapted to any profile of small and medium investor. From the most aggressive to the most defensive, without limitations of any kind in this regard, beyond the conditions of the structured deposits themselves.

You must pay attention that as long as you maintain your investment throughout the agreed term you will not have any problem to keep all capital invested. In other words, the 100% of the monetary contributions that you have made in this financial instrument. The problem will arise if you do not respect these deadlines, in which case you may lose some of the money invested. As if it were an investment in the equity markets. Whatever the case, you can opt for a term of between 1 and 10 years. Very flexible and so that you can cover your financial needs.

Structured: partial or total contributions

On the contrary, if you want part or all of the investment, that's when the first problems can arise. In the sense that if you need to recover your investment, partially or completelyBefore the end of the term, you can do so through the monthly liquidity windows that these financial instruments contemplate. But in this specific circumstance, you cannot insure the entire investment. To the point that you may lose some money on the operation.

Es un producto bancario que puedes contratar desde tan solo 1.000 euros. Con plazo de contratación específico: una vez acabado el plazo de subscription o el importe total comprometido, no es viable volver a contratarlos. Como ves, no es un modelo de inversión para nada exigente y en este aspecto se puede asimilar con los depósitos más convencionales del mercado. Dicho de otra forma, como si fuera otro término imposición, con sus consiguientes diferencias.

How are they referenced?

Structured deposits do not have to be linked to fixed income, as it seems the most logical. Not even the stock exchanges. If not, on the contrary, they may come from any financial asset, such as the European benchmark, known as Euribor. Where they have a subscription term that is very rigorous and to the point that if you exceed the dates you will not be able to subscribe them in any way. Not like traditional deposits that you can formalize at the time you consider most convenient to close the operation.

Its hiring mechanics is very simple since there are three business days for you to have one retention in the associated account to the deposit for the requested amount. But if for some reason there is not enough balance, the application will be canceled. This is a small difference that distinguishes them from other financial instruments. Beyond its technical approaches that correspond to another totally different chapter and that will be analyzed in other posts. On the other hand, there is also a date that will be useful for setting prices and that will determine the real profitability of structured deposits.

Real profitability of these deposits

You may already be wondering what the interest rate you will get on structured deposits is. Well, it will be somewhat more competitive than in the rest of the impositions. Currently you can get between 0.20% and 0.90%, depending on the chosen model. Where, this new product will pay the product will pay a coupon for its respective percentage of profitability. A novelty compared to other alternatives to make the accumulated capital profitable.

On the other hand, you cannot forget from now on that these very special deposits are characterized by being more complex than the rest. At the same time, they are of no interest to depositors due to deadlines so high with which they are marketed. To the point that other types of savings products are preferred. Not surprisingly, the increase in profitability is not very striking and only raises it a few tenths of a percentage point. As one of the main problems of underwriting structured deposits.

Bindings of impositions

Hay tantos encadenamientos en estos productos como activos financieros y así, por ejemplo, el Banco Santander estructurado en euros está ligado a los valores de Vodafone, Eon, Eni y Orange. BBVA, por su parte, considera en su oferta de ahorro una referencia estructurada a las acciones de Repsol. Sea cual sea el caso, si el Username lo desea, además puede referir este modelo de ahorro a other currencies, especially with the US dollar. Even though its result will vary depending on its price in the financial markets, with greater volatility in the expectations it offers at the moment.

On the other hand, there are several banking entities that have decided to bet on improving profitability with deposits linked to stocks, indices, or mutual funds. It is an indirect way to position yourself in equities without taking so many risks. Because the negative positions in these financial assets are minimized and to the point that the losses are not as high as can occur with the aforementioned products. In this aspect, it consists of a somewhat special mix between fixed income and classic investment models.

Structuring features

The contributions of structured deposits are very well defined and, firstly, they offer a slightly higher interest rate, which ranges between 0.20% and 0.70% nominal. Regardless, your final amount depends on the percentage of investment distribution and from the fund to the investment asset chosen by the user. In another vein, the fact that one of the drawbacks of this type of product is the ignorance of the final profitability that we will obtain upon expiration cannot go unnoticed. Unlike traditional deposits in which the profitability to be achieved is known from the beginning.

Where if there is a clear coincidence it is in the security provided by your hiring. Because in effect, it is a safe product because they are regulated by the Bank of Spain and by the Deposit Guarantee Fund. Guaranteeing up to 100,000 euros by fund and title any incident that may occur with the issuer. Whatever the nature of it and the entity where it has been hired. It cannot be forgotten that they are regulated by the National Securities Market Commission (CNMV), offering greater protection to the depositor.

What are its disadvantages?

Either way, your subscription implies a series of weaknesses that you should pay attention to to see if it is worth it or not to formalize them. Among which are the following that we expose you below:

• Structured deposits operate in secondary markets and as a result you will have more trouble undoing positions anytime you want.
• Higher risk factors are present, such as those related to bank credit and that can create some other problem in the investment.
• The markets where structured companies operate are characterized by the fact that they stand out for an absence in the external supervision. A factor that limits the security offered by this financial instrument.
• They are at some disadvantage compared to traditional assets because the secondary markets in which they operate create a less liquidity. This is a very important factor when investing savings in a financial instrument.
• And in conclusion, that maybe it does not compensate your hiring for the profitability they offer at the moment and that can make you opt for other less complex savings models and without so many risks.

In contrast, structured deposits allow you to expose yourself to various classes of financial assets, some of which you have never considered opening positions to make your capital profitable. On the other hand, it maintains a prudent satisfaction when measuring its profitability and the risks that originate in its operations. In addition, the fact that an investment can be made to suit you as a result of its most important characteristics. Not forgetting, however, that they can help you improve performance if expectations are met in the end. With the recovery of the investment at maturity, which is at the end of the day what it is all about.