1. Fluctuations even out with time
It should be kept in mind that interest and inflation will certainly change during the savings period. This causes returns to fluctuate and the fluctuations differ depending on the selected savings form.
As a rule of thumb, the higher the yield, the more pronounced the fluctuations. It is not wise to take a great deal of risk if you are investing for the short term as fluctuations will then be greater.
If you are looking to invest for the long term you can accept more risk and increase the likelihood of higher returns. It is, for example, prudent to reduce risk with increased age since younger individuals are more flexible and able to wait for fluctuating returns to even out.
2. Term of deposit
In some cases you can achieve better returns by restricting access to your savings to a fixed term. The longer the term of deposit, the