Highlights On Basic Financial Products

No matter how old you are, there comes a time in life when we all need to take out insurance or have a debit card. Read on to learn everything you need to know about basic financial products.

Savings account

Informal savings methods can be insecure and almost never offer returns; instead, savings accounts are designed to keep your money protected and generate, in some cases, interest in your favor. The benefits and commissions vary from one bank to another, so it is important that you compare above all the issue of using the debit card, the checkbook – if applicable -, the minimum balance and commissions, among others.

Insurance

Insurance is a financial product that seeks to protect people or their property in the event of an unforeseen event or accident. For this reason, there are endless insurance options: for cars, homes, medical expenses, funerals, etc. Don’t think that you are too young to worry about these things or that you don’t earn enough to make sure. We guarantee that buying a policy is much cheaper than facing a problem with just your savings.

Afore

When entering a job (unless you are a freelancer or temporary worker), your employer is required to sign up for Insurance and an Afore. Although this procedure is done automatically, you have the right to change Afore if you wish. Considering that the money you collect during your working life will be your livelihood during your retirement, it is recommended that you compare the options available to choose the one that offers you the best returns.

Credits

Credits are sums of money that a bank, financial institution, or even a department store makes available to a customer. The money is not delivered in a single exhibition, but the client can use it without exceeding their credit limit. If the beneficiary uses the credit, they are given a period to make the payment and the interest is calculated based on the money they have used.

Loans

Although many people confuse them, credits and loans are very different. The loans are delivered in full at the start of the contract and this determines the payment dates and the terms in which both the loan and the interest must be paid. This financial product allows a better order of finances to avoid overindebtedness. You can also obtain loans from personal finance lenders.