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Savings in an inflationary time

We live in times of global change in which the economic, political, and social scenarios have become increasingly challenging to navigate. As a result, our countries’ environment is complex, and solutions are not readily apparent.

Moreover, the current wave of inflation is affecting most advanced economies and, more importantly, emerging and developing markets. According to figures issued by the International Monetar Fund, annual inflation exceeded 5% at the end of 2021 in dozens of countries, which had not been seen in the last 20 years. Latin America was hit like no other region, leaving its largest economies, Brazil and Mexico, with their highest increases in years and has exacerbated the old prices problems in countries such as Argentina and Venezuela. This region ended the year as the
one with the highest rise in world prices, according to the International Monetary Fund (IMF), which in its latest projections estimated regional inflation of 9.3% in 2021 and 7.8% for 2022, although other sources estimate it to be above those figures. Countries with double- and triple-digit inflation rates do not seem to have a solution in the short term.

Let’s take a look at the following graph:




Indeed, this inflationary spiral has many explanations or, shall we say, reasons for being. Problems in global supply chains, inadequate handling of fiscal and economic policies,
central banks mistakenly aimed at finding solutions, and complex situations in each country make it difficult to visualize that we can live in the current times calmly.

It is curious to know that there are opportunities in each scenario. Although the situation is difficult, it can be seen from a positive perspective.

These economies give way to creating new services, low-price brands, increased sales channels aimed at discounted merchandise, optimization of production and distribution chains, among many other actions.”

As businessmen, we must be attentive to this because it will surely touch us to carry out one or many of them 

There is a lot to consider when it comes to determining where inflation is headed. There are reasons to believe that it will remain at high levels in the short term. We ask ourselves
then, what do we do now? How do we deal with such a situation?
There are many actions to consider taking to answer these questions. Depending on our level of aversion to risk, if we want to invest in financial instruments, the productive capacity that we have, the need to generate cash flow, and our savings mentality

In Latin America, one of the ways to mitigate the inflationary effects derived from the scenarios that we discussed earlier is to place the money in financial institutions that offer these instruments in stable currencies such as the US dollar. That eliminates or at least minimizes factors that may eventually affect.

Save across borders of our countries in international accounts guaranteed by solid legalities and systems helps us as entrepreneurs to have that peace of mind that we need to continue building our businesses

t is never too late to start saving, to open accounts that help us live.

Experts say that we should set aside between 10% and 15% of our monthly income in savings as funds for a possible inconvenience, grow future ventures, and even manage to have accounts that serve as guarantees in the growth of our business. Some others mention that we must have between 3 and 6 months of our monthly income in our liquid accounts if an emergency occurs. Each one must do their personal and family financial planning based on their needs, lifestyles, country in which they live, and future projects.

Reviewing the different products banks offer, we find the certificates of deposit known as CDs, which provide high interest in exchange for leaving the money in the bank for a defined time. There are also more liquid products in which we can dispose of the funds immediately, such as savings accounts and current accounts, but the interest is lower in these cases. Let us thus understand the immediate savings and deposit instruments in dollars that Nodusbank makes available to you in its services.

What are they, and what are their differences and benefits?

Certificates of deposit are financial title that offers a fixed return in each period, which means that the interest rate will be the same until the maturity of the CD.

At the end of the period, the client can withdraw the money or reinvest it. CDs usually offer interest rates segmented by amounts deposited or the term for which the money is placed
; typically, the higher the amount or, the longer the time, the higher the interest received

“if a client decides to take the money om the CD before the agreed term, the benets of the said agreement would be lost since he can dispose of the funds without paying interest and perhaps generate a penalty payment.”

Savings accounts are interest-bearing deposit instruments used to store your money, whether it is for an emergency, business funds, or a possible vacation. Money can be accessed or transferred to your account by depositing checks or using a mobile banking app. In addition, you can usually use your savings account to transfer money to and from other accounts at the same bank or other banks. For example, the Federal Deposit Insurance Corporation (FDIC) insured savings accounts at an American bank

That is why we say that their liquidity is limited, and these instruments are used more like a medium/long-term investment to guarantee funds that are not used for emergencies, thus protecting
us from inflationary scenarios or exchange risks because they are outside the limits of our countries and certified by international legislation

In Nodusbank , the accounts savings have the following benefits

  • Generate monthly interest.
  • ransfers can be made to own accounts and third parties in other banks.
  • Delivery of a MasterCard debit card instantly for fund movements and payments.
  • Personalized attention service through our relationship executives.

The second type of product that offers greater liquidity is checking accounts. They don’t usually have percentage yields or annual interest, but they’re great for managing funds for
everyday purchases and paying bills. In addition, most checking accounts allow you to access your money in various ways. For example, you can write checks, use a debit card, and set up online bill pay with most banks. You can also transfer money, withdraw funds from an ATM, order checks, and wire transfers.

At Nodusbank , current accounts have the following benefits:

  • Unlimited transactions.
  • Transfers can be made to own accounts and third parties in other banks
  • Mobilize your money through the MasterCard debit card, avoiding the need to carry cash.
  • Personalized attention through our relationship with executives.

“Both accounts are very safe, the American government guarantees them, and they are easy to open with us. They are financial instruments that offer high liquidity in terms of the availability of funds.”

The products that we provide in
our institution are in dollars and
are outside the borders of Latin
American countries. They are a
support instrument for individuals
and companies that wish to
obtain an advantage in inflation

It is essential to know that nancial
planning and the clear establishment
of personal and business objectives is
the basis of everything.

At Nodusbank, we help you by offering the financial instrument that suits your needs, making banking transactions easier to bring our customers peace of mind and security.

Contact us through our website, and we will
gladly guide you in everything the process

Your bank, wherever you are.