Understand what a capitalization title is and how to participate in the raffles
Many people choose the capitalization title to save money safely, this is because the deadlines and interest rates are predetermined. But is this a good investment?
To facilitate your understanding, let’s talk about some key points about buying and redeeming this investment, as well as:
What is capitalization?
The capitalization certificate is a credit certificate regulated and cquired within a specified period, for the purpose of saving money and participating in prize draws. In view of this, it was quite common for bank branches to market such securities to their clients.
How does capitalization work?
As you have already understood the meaning of capitalization, let us now understand its functioning.Form of payment:
When the consumer chooses to buy a security, there are 3 forms of payment: single payment, monthly payment and periodic payment. In this amount, the cost of the premium and the administrative expenses of the companies qualified for capitalization are discounted. In addition, this amount of money also has a correction by the Referential Rate or else by an inflation index. This situation is defined at the time of purchase of the capitalization bond.
The security is updated every month by the the same rate used in the savings account and also by an interest rate defined at the time of purchase, which may be a variable rate. This interest rate must be at least 20% of the monthly rate applied to savings.
What many do not know is that only a sum of the amount paid monthly is monetized (capitalization quota). The rest of this money is divided between the lottery quota and a kind of administrative fee.
There are also 3 terms involved in capitalization bonds:
Payment term: Equivalent to the period that the buyer undertook to make the payment of the security. For example, auto title loans determine a short period to make the payment. The period can be called the payment term.
Term of validity: Within this period, the start and end period of the application must be specified. This term may be equal to or longer than the payment term.
Grace Period: This term is the minimum period that the buyer must leave his money applied. If the investor wishes to redeem this money before the deadline, a fine of up to 10% of the invested capital can be imposed.
The consumer who acquires a capitalization bond must be drawn until the effective term to be profitable. If you are not so lucky, your title income will not outweigh the Savings. So it’s interesting that you know where to invest your money.
Know the types of Capitalization Securities
In order to meet different consumer profiles, the capitalization security is divided into three groups.
– Traditional: The total restitution of this capital is only realized for buyers who are not in deficit in the payment. Most buyers who choose this group have the objective of remaining with the amount stored until the end of the period, ie, they do not use the redemption before the term of validity. But if you opt for early redemption, the amount to be purchased may be less than the total payment already made.
– It is possible to pay the monthly, single or periodic title.
– Popular: For this group, the objective is the participation of raffles to compete for attractive prizes, even if there is no full refund of the applied value. At least one draw is held for each semester of validity of your degree.
Hopefully this article can add to your knowledge.