The summer holidays are just around the corner and they are a perfect time to take advantage of the promotions that banks offer with your checking accounts to obtain extra income.
The European Central Bank (ECB) has raised interest rates by 25 basis points at its last meeting, placing them at 4%. This rise is not one-off, it has been occurring in recent months and has had a direct impact on the profitability offered by banks in their savings products ever since.
“While the strategy of online and medium-sized banks to attract new customers is to pay the best interest on their deposits, traditional banks choose to attract liabilities towards investment funds or attract money from new customers through remunerated accounts and gifts welcome cash”, explain the experts of the financial comparator HelpMyCash.com.
Many entities offer profitability in their checking accounts to attract the attention of future clients. But as the HelpMyCash experts explain: "One of the most precious treasures of banks is payroll."
An example is the Banco Sabadell Online Account. Just for opening it, it offers a return of 2.5% APR up to 30,000 euros without asking for any requirement or charging any commission. But, in addition, if an income greater than 700 euros is domiciled, the entity gives away 200 euros net in cash. Therefore, you can earn an extra 950 euros in the first year.
For those who have salaries of more than 2,500 euros, Santander pays 350 euros gross in their Online Account. Amount that decreases to 150 euros for monthly income that does not reach this amount, but that exceeds 600 euros.
“You have to read the small print of these promotions very well. Since even if they are bank accounts without commissions or conditions, when a gift such as cash is accepted, things change. In most cases, it usually implies a stay of one to two years with the bank”, they clarify from the comparator.
Although the cash welcome gifts are immediate and are very striking, you must also assess whether it is worth opting for a good return without having to have the money blocked in a deposit or in an investment fund.
The month of June began with the banks increasing the remuneration of their accounts. One of the most striking offers is offered by the N26 Account, without commissions or conditions, with a return of 2.26% APR up to 50,000 euros. A fairly high maximum amount compared to that set by other entities, and this allows you to earn 1,130 euros of interest in one year.
Another option is the EVO Smart Account, with a similar return of 2.5% APR, but up to 30,000 euros. So you can earn an extra 750 euros in 12 months.
“From HelpMyCash we always recommend diversifying the money in several accounts or products. For example, you can take advantage of an entity's cash gift for domiciling your payroll, and have the savings in another account that offers a good return," the experts conclude.
