The rise in rates from the European Central Bank has given a boost to time deposits. After years with remuneration close to 0%, in just a few months the interest on fixed terms has multiplied.
Of course, those who go to their lifelong bank in search of an attractive fixed term will probably end up disappointed. Traditional banking, with few exceptions, is not transferring the increase in interest rates to savers. Instead, it is trying to leverage the marketing of guaranteed funds to retain savings.
The most profitable deposits must be found in online banking and in foreign entities. Of course, if you want to exceed the 3% APR, you have to choose terms of several years. Savers who do not want to be tied to an entity for a long time and prefer shorter terms can get up to 2.90% APR for one year and up to 2.26% APR for six months.
"Taking into account that the ECB is expected to continue raising rates, it is likely that the return on deposits will continue to rise over the next few months, so it seems more prudent to opt for a short-term deposit to have the money available in a near future and take advantage of future offers”, explain sources from the financial product comparator HelpMyCash.com.
What are the most attractive proposals? HelpMyCash has surveyed the market for the best year-end deposits.
As of this Tuesday, the BFF Bank Facto Account rents at 2.26% APR for a period of six months. It admits contributions from 5,000 euros. Until now, it paid 2.52% APR. It is one of the few entities that has recently lowered the remuneration of its fixed terms, although in this section it continues to lead the ranking of the most profitable options.
Banca Progetto's six-month deposit at 2% APR is also well above the average. The minimum amount is 10,000 euros. This Italian entity markets its time deposits in Spain through the Raisin platform, which allows deposits to be made in other European banks over the Internet.
Through Raisin you can also access Klarna's six-month deposit at 1.80% APR. This Swedish entity is the one that requires the lowest entry amount: only 500 euros.
BFF Bank is protected by the Italian deposit guarantee fund (FGD), as is Banca Progetto. Klarna, on the other hand, operates under the umbrella of the Swedish FGD, they explain in HelpMyCash.
At twelve months, the fixed terms available through Raisin lead the ranking. The most profitable option at the moment is the one-year deposit at 2.90% APR from the Belgian bank CKV. You have to invest at least 5,000 euros.
Two other Italian entities (Banca Promos and Banca Sistema) stand out above the rest: they pay 2.85% APR for one year.
Those savers who prefer to use a Spanish bank can get a 2.01% APR in Pibank with a term of twelve months or a 2% APR in WiZink for 18 months. Both entities are protected by the Spanish FGD.
