How to take advantage of the rate hike to make your savings profitable

The rise in interest rates by 50 basis points by the European Central Bank (ECB) has caused numerous banking products to change their conditions.

Thomas Osborne
Thomas Osborne
18 August 2022 Thursday 17:58
2 Reads
How to take advantage of the rate hike to make your savings profitable

The rise in interest rates by 50 basis points by the European Central Bank (ECB) has caused numerous banking products to change their conditions. And in this sense, some have harmed the consumer, as is the case with mortgages.

However, there are also those who will be able to benefit from the rise in rates. This is the case of Spaniards who contract products such as fixed-term deposits. “If before this news the yields throughout Europe did not generally exceed 1.5% APR in terms of two or three years, now it is easy to get 2% APR and even slightly exceed it,” they warn. from the comparator.

In a scenario in which inflation is out of control at 10.8%, the concern for finding savings products that help generate profits and mitigate the loss of purchasing power becomes something important for consumers' pockets.

Fixed terms, although with a profitability much lower than the inflation figure, may be an advisable product to face it. In addition, these products pose a very low risk of losing money, so unlike investments, the money will be protected and there are no such high chances of losing it.

According to the comparator, banks are currently raising the profitability of the fixed terms they offer, so it is advisable to be attentive to the news they launch.

In addition, in this economic scenario, it is convenient to think about contracting a product with a short term, since it is expected that interest rates will rise again in the coming months and, therefore, it is more positive for the pocket to have the option of recovering the money in a short time and reinvest it in a product that has a higher profitability.

Six month or nine month deposit may be an option. When the term is over, you can reinvest in a product that generates more profitability. In the current market it is possible to exceed 1% profitability even in deposits of less than one year. This is the case of the nine-month deposit from Haitong Bank, with a return of 1.10% APR. This entity is headquartered in Portugal and also has a branch in Spain.

Another deposit of this entity that can be an alternative to hire is the six-month deposit, with a return of 0.90% APR.

Haitong requests a minimum of 10,000 euros for all its products and the Deposit Guarantee Fund (FGD) to which it adheres is that of Portugal.

On the other hand, slightly expanding the range of entities and time, Banca Progetto stands out with a return of 1.70% APR for a term of twelve months.

The products of the Banca Progetto credit institution can be easily contracted from Spain by looking for a suitable intermediary. The minimum to open it is 10,000 euros and it is protected by the Italian FGD.

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