The European Central Bank (ECB) has given a boost to the profitability of deposits. After years with interest close to 0%, in a matter of months its profitability has skyrocketed. Now, the best fixed-term deposits already exceed 3% APR.
Of course, to earn more than 3% interest you have to immobilize your savings for a minimum of three years, a period that many savers are not willing to assume, especially now that the market is changing so quickly.
“If we trust that the interest on deposits will continue to rise in the short and medium term as a result of the ECB rate hike, it is best to opt for medium or short-term deposits, in order to have the money available in the near future. and to be able to take advantage of future improvements”, explain the experts of the financial product comparator HelpMyCash.com.
How much can be earned in the medium term? The best one-year deposits have a return of up to 2.50% APR. Thus, a person who invests 100,000 euros, which is the maximum amount covered by the Deposit Guarantee Fund (FGD), would take up to 2,500 euros gross in a year, they say from HelpMyCash.
The most profitable option is the one-year deposit from Banca Progetto at 2.50% APR. It can be invested from 10,000 to 100,000 euros and is protected by the Italian FGD.
It is followed by another Italian entity, Banca Sistema, which pays 2.40% APR for one year. Behind is the one-year deposit of Coop Pank at 2.30% APR. In both cases the minimum amount is 5,000 and the maximum is 100,000 euros. Banca Sistema is protected by the Italian FGD and Coop Pank, by the Estonian.
The three previous deposits can be contracted online through Raisin, an online platform that allows Spaniards to access savings products in other European banks, all of them guaranteed by a FGD, explain HelpMyCash sources.
Outside of Raisin there are also alternatives above 2%. The BFF Bank Facto Account rents at 2.27% APR for a term of one year and can be contracted from 5,000 euros. The entity operates online and has a branch in Spain, but the FGD that guarantees the deposits is Italian.
The entity raised the profitability of its Facto Account at the end of September, making it one of the most profitable in the market. However, some users have complained about some slowness during the opening process. In the face of criticism, the entity has explained that it has been overwhelmed by the "positive response" from consumers and that it is currently registering "a longer waiting time for attention, validation, accreditation and updating of account information".
Banco Finantia pays 2.20% APR for twelve months, although it requires a much higher investment than the rest: a minimum of 50,000 euros. The bank operates under the umbrella of the Portuguese FGD, although it has a branch in Spain.
Also noteworthy is Pibank's 12-month deposit at 2.01% APR. It has two advantages with respect to the others: it has no minimum amount and, in addition, it can be canceled before the expiration date. Of course, if the term is not met, the bank will return the amount less the interest generated to date. It is the only one on the list that is protected by the Spanish FGD.
