On October 1, 2019 by admin

LTPs rely on strong state support and have a statutory framework. However, one may be more beneficial to us than the other. What are the main points to look out for?

 

Home saving is not a standardized product

It is possible to distinguish between very similar LTPs and to choose the better solution. These differences may include:

• AER
• Home loan terms
• Promotions, discounts

Yield, or EBKM, is different if the maturity is different, because the shorter the maturity, the better for us – the ratio of the amount deposited and withdrawn.

For example, two very popular service providers in the area approach the issue of length of home savings in different ways. Fundamenta typically offers LTPs with longer maturities (50, 62, 79, 97, 120 months) than Erste (48, 60, 72, 96, 120 months). This also has an effect on the available yield.

The EBKM is 10.49% for 48 months, and 5.11% for 120 months, which means that the larger the amount of money in the account, the proportionately less the amount of state aid paid.

 

You can enter into LTP with or without credit

The contract amount consists of two parts, the amount saved and the home loan. For example, you can apply for a higher loan than Fundamenta, paired with LTP, and here the interest rate is exaggerated: 3.5%. However, it is worth bearing in mind that a loan is always optional and can be obtained without it.

The Achilles heel of LTP is the account opening fee, which is a fairly high amount to be paid upon opening. Each bank offers promotions from time to time when releasing this fee, so keep an eye out for these opportunities. For example, OTP made the LTP opening free at the beginning of the year, but only if the child is under 14.

It is worth considering, however, that if you qualify for a rebate or any other promotions, such as the purchase of an affiliated product, you will actually win, and at what additional cost.