Currently, there is so much variety in the market for fixed-term deposits that it is not necessary to have a large amount of money saved to be able to reach 4% APR at 12 months.
For just over a year —in July 2022— the European Central Bank (ECB) began to raise interest rates to combat inflation. As a consequence, many banks began to remunerate their clients' savings by paying increasingly better interest rates.
With ECB interest rates at 4.25%, the fight for liabilities among some European banks continues to be quite intense.
Until a few months ago, to exceed the desired 4% APR for a year, an initial investment of at least 10,000 euros was required. But now you can get it from just 1 euro.
This is the case of the Latvian bank BluOr Bank, which offers a 4.21% APR on your 12-month deposit.
If you want to make a larger investment to obtain more benefits, there are other very interesting options.
Currently, the best one-year deposit that can be found in Europe is that of the Italian entity Banca Sistema, with a yield of 4.40% APR.
It is closely followed by the already mentioned BluOr Bank deposit and closes the podium of the best 12-month deposits by another Italian bank, Banca Progetto, which pays interest of 4.20% APR.
The difference between the three deposits is the minimum capital that each bank requires to be able to contract it. While the one from Banca Sistema asks for a minimum of 20,000 euros to be hired, Banca Progetto can be opened from 10,000 euros and the one from BluOr Bank, as we have seen, from just 1 euro.
With such similar returns, a determining factor for choosing between one or the other is to be clear about how much money we are willing to keep blocked during the chosen term.
“At HelpMyCash we always recommend diversifying savings among various products and terms. For example, you can invest 10,000 euros in a 12-month Banca Progetto deposit and have the rest in a remunerated account that pays us interest”, they add from the comparator.
For example, the EVO Intelligent Welcome Account has a return of 2.5% APR up to €30,000 and has no maintenance or opening fees. Which makes it a good option to distribute the money.
Deposits from BluOr Bank, LHV, Banca Sistema and Banca Progetto, among many others, can be easily contracted from Spain through the German platform Raisin.
The process is completely online and free: you just have to open an account at Raisin Bank, choose the deposit that interests you the most and make a transfer to the account of the money you want to invest in it.
Raisin will be in charge of transferring this money to the bank to which the deposit belongs and of managing all the documentation.
In addition, all these deposits are backed by the Deposit Guarantee Fund of the country of origin, like the Spanish one, it covers up to 100,000 per entity and holder.
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