Historically low interest rates

Interest rates used to be higher

Not so long ago, banks would give a decent compensation for the money on your savings account: the interest rate. As a result, your savings could add up to a nice sum of money, and with a high interest rate, some people could even make a living on the returns of their savings.

Not anymore.

Zero or negative interest rates

With the low interest rates of today, you do not get almost any returns. Sometimes the bank might even apply a negative interest rate, meaning that you actually have to pay for storing money on a savings account.

Why interest rates?

A reward for financial risk

The interest rate is the price of borrowing money. The borrower receives the money from the lender and pays a part of the total sum in return—this is called the interest rate. Normally, it is expressed as an annual percentage.

When you make deposits into a savings account, you actually agree to lend them to the bank: the money is no longer yours. Yet the bank will not even keep it but will rather lend it forward to others. Every new loan brings about a new risk of not getting your money back, since one of the borrowers might not be able to pay up. That is why you should be properly rewarded for your savings.

Why take the risk?

The reward is given because there are risks to lending your money to the bank. You might not get everything—or anything—back when you need it. A bank can go bankrupt, or the government might intervene and limit the money that can be withdrawn. With the current, historically low interest rates, you could ask yourself:

“Is the reward good enough for the risk to be worth it?”

No interest rates needed with Voima

The gold on a Voima Account is fully yours and fully insured. And because there is no risk of losing it, there is no need for a reward in the form of interest rates. Yet that does not mean that you will not get any returns, since this gold would have given you a return similar to a yearly interest rate of 6.68% over the last five years. Check our comparison table to learn more about this.

Preserve your purchasing power

Euros are losing value

Besides the risks involved in lending your euros to a bank, the euros themselves carry the risk of losing their purchasing power as the years go by. This means that, due to inflation, the same number of euros buys you less and less over time.

With just a 3% annual inflation rate, the prices double in only 23.4 years. And if inflation spirals out of control and turns into hyperinflation, nothing can stop the prices from increasing drastically—like doubling overnight.

Gold is historically a great store of value

Just by looking at the historical value of gold compared to multiple currencies, it immediately becomes clear that gold is a better store of value in the long run.

Another risk not worth taking?

Preserve your wealth and open a Voima Account.

Saving gold compared to saving euros

10 years

Saving €1,000 since 2010

Voima Account (gold) 4.04% average yearly return Balance: €1,485.51

Traditional bank account (euros) 0.62% average yearly return Balance: €1,064.10

5 years

Saving €1,000 since 2015

Voima Account (gold) 6.68% average yearly return Balance: €1,381.90

Traditional bank account (euros) 0.25% average yearly return Balance: €1,012.56

1 year

Saving €1,000 since 2020

Voima Account (gold) 10.94% average yearly return Balance: €1,109.41

Traditional bank account (euros) 0.25% average yearly return Balance: €1,002.50

Which interest rates were used?

The interest rates of the traditional bank account for euros are based on the interest rate that the European Central Bank sets (marginal lending facility). But in reality, the interest rates of those accounts are much lower, nowadays close to 0% or even negative. The trend is clearly downward.

What fees were taken into account?

For this comparison, the following fees of Voima were used: the exchange fee 1.99% and the safe storage fee 0.99%. For the bank account, no fees were included.

By the way, Voima is fully transparent about pricing, which also includes:

• High-security storage in Helsinki
• Thorough compliance
• Full insurance of your gold
• Regular audits and assays
• The Voima app
• Customer care

For the traditional bank account, it was assumed that there are no other costs, while in reality fees might apply for opening an account, doing a transfer or withdrawing money.

Why Voima Account?

With a Voima Account you can start saving in gold

A Voima Account does not give a return in interest rates but is nevertheless an outstanding instrument to store value, as illustrated above.

• Physical gold in full ownership.
• Highly secure and fully insured storage in Helsinki, Finland. This way, you can keep your peace of mind by not having to store physical gold (like coins or bars) at home.
• Digital access via Voima's app or website, physical withdrawals possible at the office in Helsinki.
• You can start with a gram.
• Attractive and transparent pricing.

Learn everything about Voima and the Voima Account.

Did you know that opening the account is free?

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