The rate hike by the European Central Bank (ECB) has brought hope to savers. After years surrounded by products with ridiculous returns, many are beginning to see the light at the end of the tunnel.
Although at the moment not all banks have transferred the rate hike to their customers, some entities, especially online banks, have considerably increased the profitability of their accounts and deposits.
At the beginning of 2022 the average interest on deposits was 0.04%. In December, it was 0.64%, according to the Bank of Spain. And that's just average. The best one-year deposits already reach 3%.
With inflation above 5%, making savings profitable is essential if we do not want to become increasingly poor. And although beating the CPI without going to the stock market or other investment products is, today, impossible, the best deposits allow you to mitigate its effects and make your savings grow without the risks involved in investing, explain the experts from the financial comparator HelpMyCash.com. And what are the best proposals?
The best short and medium term deposits are marketed by the Italian entity Banca Progetto. This entity allows Spaniards to contract their fixed terms online, without leaving home, through the Raisin virtual platform. And what returns does it offer? Currently, your six-month deposit rents at 2.50% APR and the one-year fixed term at 3% APR. They can be contracted from 10,000 euros and the money is recovered at maturity. If we put, for example, 50,000 euros, we will earn 625 gross euros in six months and 1,500 gross euros in one year.
Banca Progetto is protected by the Italian Deposit Guarantee Fund (FGD) which, like the Spanish one, covers up to 100,000 euros per holder in each entity.
Tax withholding, in this case, is zero percent, so the customer has to enter the interest they have earned on their income statement to pay the corresponding taxes, HelpMyCash sources explain.
The Spanish branch of Haitong Bank has an offer that far exceeds the average. It offers a nine-month deposit at 2.45% APR. If we invest 50,000 euros, at maturity we will have earned about 919 euros.
The bank also sells other deposits: for six months it pays 2.30% APR and for one year it pays 2.85% APR. In all cases the minimum amount is 10,000 euros. Early cancellation is not allowed.
As it is a branch established in Spain, the bank enters the profits net, since it is covered by the Spanish tax regime and it is not necessary to add them manually in the declaration. In this case, the FGD that protects us is Portuguese.
Deposits have one advantage - they are more profitable than accounts. But they are designed to leave the money immobilized for several months or years. Those clients who do not want to be tied to any bank, especially now that the ECB is expected to raise rates again, which could translate into an improvement in the profitability of savings products, can take advantage of the flexibility of the accounts.
The Banco Sabadell Online Account for new customers has a return of 2% APR the first year. Income from the first euro up to a maximum of 30,000 and to contract it, it is not necessary to pay a salary or receipts. The account has no commissions and money can be deposited and withdrawn at any time. As it is a national entity, the money is protected by the Spanish FGD.
