Advantages and Disadvantages of Investment Certificates

By أية سعد good
Last updated 27 June 2020
Advantages and Disadvantages of Investment Certificates

Investment Certificates are one of the most important banking products. Banks issue these fixed-term bonds as a minimum for a full year in accordance with a fixed interest throughout the period as the banks take the proceeds from the sale of those certificates and invest them in other fields in order to give the depositor owner of those bonds the contractual financial benefit and the rest will be a profit margin for the bank. The real motivation for the growth of this investment is the word (investment safety), which is the goal of everyone who wishes to invest his money safely and effectively with the lowest risk rates that reach 0% in this type of investment.

Also read: The Importance of Having a Commercial Lawyer Before Starting Your Investment

The depositor here has the inherent right to recover the amount of money he used without diminution and without any administrative expenses.

One of the advantages of investing is safety. Also, among the advantages is the possibility of recovering the principal of the capital even before the expiry of the term, but here there will be administrative expenses deducted from the original amount, and it is possible to recover the amount at any time. Some have considered that investing in these bonds in a large way will lead to a state of market stagnation.

Also read: How to Earn Money from Stock Exchange

اقراء المقالة باللغة اخرى : العربية

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