Fixed-term deposits continue to be one of the most profitable options for the most conservative savers to get the most out of their money.
Spanish banks offer remunerations at levels not seen since 2014. However, they are still very far from the interests paid by European banks.
For months now, to achieve the highest profitability on 12-month deposits, it is necessary to look at Italian entities. The one-year deposit from Banca Sistema pays interest of 4.40% APR, currently the best profitability that can be found in Europe. Of course, to hire it you have to make an initial investment of 20,000 euros, an amount not suitable for all budgets.
However, the 12-month deposit from Banca Progetto, another Italian bank, can be opened from 10,000 euros and has a profitability of 4.30% APR. Even with an initial capital of 500 euros, you can find deposits that exceed 4% APR, such as that of the Estonian entity LHV, which offers 4.15% APR.
Remunerated accounts do not achieve the profitability of fixed-term deposits, but in exchange they allow the money to be available at all times.
“With the wide offer in the market, the important thing is not to leave a cent of our money without it giving us benefit. To do this, the smartest thing is to distribute it into several products: we can have a large part of the savings in a fixed-term deposit and the money from our daily life in a remunerated account,” the experts point out.
The EVO Smart Welcome Account, focused on new clients, pays interest of 2.85% APR up to 30,000 euros without any type of requirement, so you can earn up to 843 euros in one year. In addition, it pays this profitability from the moment it is opened until January 31, 2025.
Another option is the N26 Savings Account, which, although it offers a return of 2.26% APR, has no maximum payout or deadline.
“When contracting a paid account, we should not only look at the profitability it offers. We must take into account the maximum amount to be remunerated and for how long the bank is going to pay us interest. Perhaps an account with a lower profitability but for a longer period of time is better for us, or one that does not have a maximum amount,” they point out from HelpMyCash.
This year, monetary funds are gaining ground in the field of savings, increasing their asset volume by more than 50%.
Although capital and interest are not protected by the Deposit Guarantee Fund, as is the case with deposits and bank accounts, monetary funds have a very low risk, since they invest in short-term fixed income. In addition, they take advantage of possible increases in interest rates, which is why their profitability is currently skyrocketing.
For example, the InbestMe Savings Portfolio has an expected return on its account in euros of 3.50%, higher than that offered by remunerated accounts and also allowing the money to be available at all times.
