The flexibility of investment products is measured according to how quickly the money invested in them can be accessed.
Not all investments are equally flexible. But what does flexible actually mean?
The flexibility of investment products is measured according to how quickly the money invested in them can be accessed . Furthermore, flexibility also depends on how quickly and to what extent you can change the deposits .
Some contracts give consumers generous rights here, others restrict this. A product is also flexible if it can be quickly and easily resold to interested buyers or on the stock exchange if necessary.
Finally, the conditions on which you can exercise your rights are also important: If you can cancel or change rates, but only if you pay penalty interest, have to accept cancellation discounts or other costs, the investment is less flexible. Financial products that are concluded over a long term and charge high costs at the beginning of the contract are also not flexible, because a disposition at the beginning is very disadvantageous.
So how flexible can it be? What are your plans for which you want the money saved to be available? Buy a house, build up reserves, save for purchases, build up a pension plan, reserve for long-term care?
IMPORTANT: You do not have to commit yourself, there are enough forms of investment that are very flexible and still achieve similar returns as many rigid forms of investment Some examples to make your product selection easier:
Daily money: Interest can change daily, credit is available daily, no costs.
Bank savings plan: The interest rates vary depending on the offer, the rate can be changed, there are no closing costs.
Fund savings plan: the rate can be changed, credit is available at short notice for stock exchange trading, if there is an issue surcharge at all, it is only due when paying in installments.
Pension / life insurance: high costs at the beginning, in most cases the contribution cannot be changed at will without extra costs
Closed-end fund, alternative investment fund: often fixed, very long contract terms