The collection of monthly or periodic interest has been one of the reasons for the success of deposits where more than half of our savings are in accounts or fixed-term deposits. Savers only had to worry about renewing their deposit at maturity. In case they were not satisfied with the new interest offered by their entity change banks make a transfer contract a fixed term tax more profitable wait for a year or 13 months and collect interest. In the case of deposits or fixed term deposits you must always deduct 19% or 21% of the withholding tax on interest received.
To know our real profitability we must take into account the effect of the price increase that makes our savings lose value. In the years, 2014 and 2015 inflation was negative that is to say due to the effect of the drop in the price of gasoline there was no rise in prices. Since last year the trend is to raise prices again.
Faced with this situation, many savers are wondering if it is possible to obtain a periodic income similar to the one they had when fixed-term taxes gave 3 or 4%. The answer is that if it is possible to charge some “interest” a monthly or quarterly return for our savings. It is about investing in funds that pay rent you can see how they work in this type of funds in the article Funds that pay periodic income Alternative for deposits.
These are investment funds that invest in a typology of products that pay periodic returns these are some investment funds that distribute dividends. These companies pay dividends two or three times a year, that is, they distribute a share of the profits earned among their shareholders.
The investment funds that invest in this type of companies are collecting the coupons or dividends paid by the companies and in turn periodically they are distributing them. To get an idea of the profitability that we can expect in the funds that pay dividends in a diversified portfolio in 3 or 4 mutual funds of income in 2016 obtained a return of 4%.