A little over a year ago, the profitability of deposits was close to zero percent. In fact, there were fixed terms with which you could not earn a single cent no matter how much money you invested. Today, the best deposits exceed 4% APR.
The ten consecutive rate increases carried out by the European Central Bank have triggered interest in these savings products. Even after the break that the European regulator took in its last meeting, some entities have continued to make upward movements.
However, it is possible that the profitability of the best deposits will stagnate if the ECB does not raise rates further and banks could even reduce the interest on their longer terms if they foresee that rates will end up falling in the medium term, explain the experts from the financial products comparator HelpMyCash.com. “In any case, we still have time to sign a good deposit,” they point out.
The large Spanish banks have not gone after individual deposits. Those that have encouraged the market have been medium-sized entities and online banks.
If we focus on deposits with a term of one year protected by the Spanish Deposit Guarantee Fund (FGD), Pibank stands out, whose one-year deposit yields 3.34% APR, - and Banca March, Deutsche Bank and Self Bank, which sell one-year deposits at 3.30% APR.
Behind are other entities such as Cajamar, which pays 3% APR, or MyInvestor, which sells an online deposit at 3% APR (it also offers the same six-month profitability).
However, the best offers come from foreign banks. Continuing with deposits with a term of one year, the undisputed king of the season is Banca Sistema. This Italian entity, which markets its deposits in Spain online through the Raisin platform, is currently offering a one-year deposit at 4.40% APR.
Another Italian bank, Banca Progetto, pays 4.30% APR and Lithuanian Fjord Bank offers a yield of 4.21% APR.
Even if they are foreigners, they are all protected by a FGD with the same guarantees as the Spanish one and can be contracted online through Raisin. The only drawback is that if more than 50,000 euros are invested, you must present form 720 to the Tax Agency.
Savers who do not want to do any extra paperwork with the Treasury, but who do not mind sheltering under the umbrella of a foreign FGD, have more options. BFF Bank, which has a branch in Spain, so in practice it works like any other national bank, although it is protected by the FGD of Italy, is one of the entities that currently pays the most interest.
Your twelve-month Facto Deposit yields 4.06% APR, although the jewel in the crown is the six-month deposit, whose profitability reaches 4.32% APR.
It is important to take into account the minimum amount that each entity requires to contract its deposits, since not just any amount is always valid. Banca Sistema, for example, asks for a minimum of 20,000 euros, while Progetto reduces that amount by half. Facto deposits, for their part, can be opened from 5,000 euros, they warn on HelpMyCash.
Over the past few months, it seemed clear that betting on short-term deposits (about three to six months) was the most sensible option, given that the rally in interest rates was not yet over. But at the regulator's last meeting, the rates stayed the same.
Although it is not possible to predict where rates will move, the hikes could have come to an end. And although everything indicates that they will remain high for a while, at some point they will end up falling.
Savers who want to ensure an acceptable return for several years can begin to consider the possibility of taking out a long-term deposit, according to HelpMyCash.
For example, Banca Progetto pays a 4.37% APR for two years and, for the same term, Banca Sistema offers a 4.36% APR.
