Spanish savers find it increasingly difficult to make their money profitable without taking on significant risks. Time deposits have been languishing for years. Nor have the riskiest financial assets come out of the way of profits this 2022.
However, the increases in interest rates announced by the central banks have begun to raise the profitability of fixed-term deposits. In fact, these have changed almost daily since central banks got serious, as data from , the largest European depository supermarket, shows.
Likewise, other conservative financial products, such as , partly mask inflation in the portfolios of individuals. This option may suit the non-invested part of the most risky investors, although this product remunerates only small balances.
Accounts and deposits work in a similar way: a person makes their money available to a bank. In exchange, this entity guards it and returns it to the client with interest that is paid when the agreed time passes.
Accounts or deposits?
Bonuses for opening an account are a tool widely used by banks to attract customers. However, none of those that are currently on the Spanish market serve to exceed the CPI, according to data advanced yesterday by the National Institute of Statistics (INE). But there are options that cover more than half of the price increase.
Bankinter’s payroll account currently stands as the account with the best APR rate. The bank remunerates savings with 5% during the first year and up to 2% during the second. The maximum remunerable is 5,000 euros. The domiciliation of a salary or pension greater than 800 euros, in addition to three receipts, are the requirements set to achieve these returns. Sabadell (3%) and , the digital bank of the Santander group (2.58%), are other banks that remunerate new customers the most. In the case of the Catalan entity, users can remunerate up to 10,000 euros.
Likewise, some entities remunerate with lower rates, but with hardly any permanence or contracting conditions for clients. , Andbank’s neobank, has a savings account, which offers an APR of 1% during the first year for the first 15,000 euros contributed. From then on, you pay 0.1% in a product without commissions and that does not require direct debit of payslips or receipts. Cuenta Contigo from Renault Bank does not require a relationship with the entity either, although the remuneration already falls to 0.45% APR. Of course, with the advantage that it remunerates customer balances without limits.
Deposits that yield more than 1.2%
Interest-bearing accounts, like deposits, require maintaining the deposited capital for the time agreed by contract. In the case of deposits, this 2022 has been coupled with the rise in rates by central banks. “We have seen since the beginning of the year that banks need to finance themselves and this translates into an increase in rates,” said Mónica Pina, general director of Raisin for Spain and Ireland, in an interview with Finect at the beginning of June. “The one-year offer started around 65 basis points and now we are at 95,” Pina added. The last three weeks have followed the same trend and there are already a handful of European deposits that yield more than 1.2% APR in different terms.
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Deposits, unlike the stable and invariable conditions of the accounts, are more oriented to benefit from the withdrawal of monetary stimuli from central banks. With the multiple rate hikes projected for the rest of the year, the trend in deposit yields will continue to rise.
The Italian remunerates more than 1.8% for its three-year deposit with a minimum investment of 10,000 euros. Short-term investors have options that are well above 1% APR with lower time horizons: Progetto’s own 12-month deposit (1.25%) or (1.55%). The latter, contractable from 2,000 euros.
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The most profitable deposits in the European market are collected in . From it, all the details of these products can be consulted, such as the contracting conditions, the investment term or the maximum capital that the deposit guarantee fund covers in the country where the headquarters of the entity that manages it is established.
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