Seeking Stable Returns from Deposits? Tips to Maximise Interest and Keep Funds Safe

Amid global financial market turmoil, many people are starting to seek investment instruments that can provide stable returns without having to face high fluctuation risks. One option that is regaining attention is the time deposit. This time-bound savings instrument is known as a financial product with a low risk level, yet it can still offer competitive yields compared to ordinary savings. Besides offering certainty of interest, deposits are also a choice for people who want to build discipline in managing finances, as funds cannot be freely withdrawn before the maturity date. Although it appears simple, a number of strategies can be employed to make deposit returns more optimal, ranging from choosing the right tenor and utilising automatic rollover features to placing funds in products with competitive interest rates. Deposits have several advantages that keep them relevant amidst a multitude of modern investment options. Some key advantages of deposits include: higher interest compared to ordinary savings; relatively low risk; guaranteed by the Indonesia Deposit Insurance Corporation (LPS) according to applicable conditions; flexible tenor options; suitability for short- to medium-term financial goals; and the ability to be used as credit collateral at some banks. For investors who prioritise capital security over the potential for large profits, deposits are an instrument often chosen to maintain portfolio stability. Although classified as a conservative instrument, deposit returns can still be enhanced through proper strategy. First, compare interest rates before placing funds. One common mistake customers make is immediately opening a deposit at the bank where they have an account without comparing offers from other banks. Currently, several digital banks and rural banks (BPR) offer more competitive deposit interest rates compared to large conventional banks. Therefore, comparing interest rates is an important first step to obtain more optimal returns. Second, take advantage of new customer promotions. Many banking institutions provide bonus interest or cashback for new customers who open deposits through digital applications.