Bank annuity

What is a Bank Annuity?
A bank annuity is a form of retirement savings where you make regular deposits with a bank over a period of time, usually until your retirement age. These deposits are used to build up a capital that is later converted into a periodic payment during your retirement. The main feature of a bank annuity is that the capital is managed by a bank, as opposed to an insurer as with an insured annuity.

How does it work?
When you open a bank annuity, you decide how much and how often you want to make deposits. These deposits are invested in a mix of financial products, such as deposits, bonds and mutual funds, to build up a capital. At the agreed retirement date, the accumulated capital is converted into periodic benefits, which can serve to supplement your retirement income.

Advantages of a Bank Annuity

1. Flexibility: You can decide how much and how often to make deposits, and you have the freedom to choose one-off deposits or periodic deposits.
2. Financial Security: A bank annuity offers guaranteed benefits during your retirement years, giving you financial stability and peace of mind.
3. Tax advantage: In many countries, depositing into a bank annuity offers tax advantages, such as tax deductions on the amounts deposited or deferred tax on the returns.
4. Diversification: The capital of a bank annuity is invested in different financial products, providing a diversified and potentially profitable investment strategy.

Why choose Ralmar?
At Ralmar, we understand that every individual situation is unique. That is why we offer personalised advice and tailor-made solutions for your retirement planning. Our expert advisers will help you choose the right banking annuity to suit your financial goals and lifestyle.