A financial simulation of BCI bank's fixed-term deposit instruments shows how an initial investment of 500,000 Chilean pesos translates into different levels of profitability depending on how long the capital is held.
The analyzed data indicates that profits grow as the investment term is extended. However, monthly interest rates tend to stabilize over longer periods.
With a 7-day deposit, an investor would earn $338, at a monthly rate of 0.29%. While this option offers the highest liquidity, it also yields the lowest return.
For a 32-day term, the projected return rises to $1,867, with the monthly rate increasing slightly to 0.35%.
Returns and Extended Terms
Extending the investment to 60 days brings the profit to $3,500. Despite the increase in the final amount, the monthly rate remains at 0.35%, matching the yield of the 32-day term.
This pattern suggests that after the first month, the additional benefit per extra day of investment decreases. Ultimately, the investor's decision will depend on whether they prioritize quick access to their funds or securing a larger sum upon maturity.
Fixed-term deposits remain a low-risk tool for those looking to protect their capital. Because the return is defined from the outset, this instrument allows for certain projections of the final amount without exposure to the volatility of other financial markets.