top of page

The different types of investment (P.1): interest-bearing savings



Góðan daginn pillar! Barza asubwihi generous! Don't listen to fools. Don't listen to those who say education is not important.  Observe, learn, understand and then undertake. You don't have to despise intrapreneurs to value entrepreneurs. Does JESUS despise the HOLY SPIRIT?




" He who acquires good sense loves himself; he who keeps understanding finds happiness." (Proverbs 19:8, Segond 21)


" Precious treasures and oil are in the dwelling of the wise; But the foolish man swallows them up." (Proverbs 21:20, LSG)





An investment is an asset or property acquired, loaned or operated with the aim of generating income or capital gain at the time of sale. Capital gain is the increase in value of an asset over time. Investors can invest their own funds or assets, borrowed money or funds entrusted to them. Let's talk about the different types of investment.


  1. Interest-bearing savings

  2. Insurance products

  3. Tontines

  4. Unlisted financial securities and partners' current accounts

  5. Listed financial securities and currencies

  6. Digital assets

  7. Material goods

  8. Real estate

  9. Land and agricultural investments

  10. Investing in human capital

  11. Entrepreneurship, cooperatives and holding companies (groups of companies or portfolio companies)




1. Interest-bearing savings


These are sums deposited in financial establishments, in savings accounts or term accounts, remunerated by interest income. Establishments include banks, neobanks (mobile banks), microfinance institutions and savings groups (financial tontines).


A term account is an investment account into which you deposit a sum of money for a fixed term. The capital plus interest earned will only be available at the end of the contract, with no administration fees. The term account is fully locked-in for the duration of the contract. Withdrawal of all or part of the capital before the contractual maturity date is only possible under certain conditions, which may result in the loss of interest and the payment of fees. Unlike term accounts, sums deposited in passbook accounts are available at any time.


Advantages and disadvantages


The main advantages of these types of account are security, accessibility and availability. Some accounts are tax-advantaged. Interest rates are guaranteed, and risk is negligible.  In the event of an emergency, it is possible to release the funds, accepting in return the loss of remuneration and, possibly, the payment of fees. Interest-bearing savings accounts are open to all. Minors, adults, associations (including churches), companies and public bodies, sports clubs, and so on. Savings only earn interest above a certain amount. The larger the savings and the longer the term, the higher the interest.


With reference to France and French-speaking Africa, here are some examples of interest-bearing savings.


  • The Saving account A or Booklet A⇒  is a regulated savings account under French law (ceiling and interest rate), exempt from tax and compulsory deductions. It is open to individuals (no age limit) and certain associations, with a limit of one account per person and association. Funds invested in a Booklet A are available at any time. This type of passbook exists in several countries under a different name. Parents, legal guardians and, in some countries, grandparents can open a savings account for a minor. This type of passbook is only open to residents of the country concerned. 


  • The Sustainable and Inclusive Development Booklet (in french LDDS, Livret de Développement Durable et Solidaires) ⇒ This is another regulated savings account available to everyone. The money saved is earmarked for financing small and medium-sized businesses and the social economy. The savings ceiling and interest rate are set by the government. Funds are available at any time.

  • Popular avings booklet (in french LEP, Livret d'Épargne Populaire) ⇒ This is a regulated savings account reserved exclusively for individuals with modest incomes. The savings ceiling and interest rate are set by the government. In various countries, it either pays an attractive rate of interest or is eligible for tax relief. Like the previous two passbooks, it is only open to residents of a given country.

  • Young Booklet ⇒ This passbook is reserved for young people. In France, it is reserved for young people aged 12 to 25. The interest rate is set by the banks. In some countries, however, it is set by the government. Depending on the country, the ceiling is set by the banks or the government. In France, it is tax-exempt. The Young Booklet is a savings account opened by minors for themselves, not by adults for minors. A savings account for minors is opened by the parents or legal guardians. The Young Booklet is opened by the minor himself from his 12ᵉ birthday, with the agreement of his parents or legal representatives.  If the minor is emancipated, he or she does not need the authorization of his or her parents or legal representatives.

  • Account on booklet or bank savings book ⇒ This is not a regulated account. Conditions and interest rates are freely determined by financial institutions.  It is possible to open several bank savings books in different banks and in different countries. Individuals and legal entities (associations and companies) can open savings books. 🙂 Savings accounts do not pay interest automatically. Not all savings accounts pay interest. If in doubt, check the bank's website, or ask your bank or financial advisor.

  • Home Savings Account (in french CEL, Compte d'Épargne Logement) and Housing Savings Plan (in french PEL, Plan Épargne Logement ) ⇒ Present in different countries under different names. These are regulated accounts. Conditions are set by the State (accessibility, funding, ceiling, duration, interest rate, etc.). In some countries, they are offered only by state-owned banks. With no age limit, they are limited to one account per individual. In France, these accounts can be accumulated by one person if they are opened in the same bank. They can also be used to benefit from advantageous conditions when taking out a mortgage.


  • The Term Account (CAT) or term deposit or blocked savings account ⇒ This is an account in which the sums deposited are blocked for a defined periodThis account is funded by a single payment made when the account is opened (an additional payment is sometimes possible under certain conditions). This is not a regulated account. Conditions and interest rates are freely determined by financial institutions. Interest rates may be fixed, progressive or revisable (calculated from a reference rate plus a fixed rate).


  • Health savings account ⇒ 🙂  This type of account exists only in certain countries, including the United States. It is designed for the sole purpose of paying medical expenses (in full or in part). It can be funded by the account holder(s) and/or their employer(s). In addition to the interest earned, the account can be used to pay for one's own medical care or that of family members, either free of charge or on a deferred basis.

  • The currency savings account ⇒ 🙂 classification and name are debatable. But the essence is the same. It is not a regulated account. It is open to all (individuals and companies).  Conditions are freely defined by financial institutions, within the limits of the currencies accepted in the country of residence of the account. Savings are deposited in a foreign currency and earn periodic interest based on the currency's exchange value.  This account should not be confused with the foreign currency current account and the foreign currency deposit account.  A deposit account is an account used solely to receive, deposit and withdraw money (cash and transfers).  Unlike a current account, it is not supposed to be used to make payments.

** Góðan daginn = Good morning in Icelandic

** Barza asubwihi = Good morning in comorie

0 comments

Recent Posts

See All

Comentarios


Newsletter / receive  news by email.

  • Facebook Social Icône
  • Twitter Icône sociale

© 2020 Simone-Christelle (Simtelle) NgoMakon

bottom of page