The last quarter of the year has begun with a new movement by Spanish banks. After many months of refusing to remunerate their clients' savings, they have begun to increase the profitability of their fixed-term deposits, bringing their positions closer to the offer in European banking, which is much more competitive.
“With the new increase in interest rates by the European Central Bank (ECB) – which placed them at 4.50% in its last meeting on September 14 – it is expected that banks will once again improve the interests of their deposits. It is a good time for the most conservative savers to make the most of their money," explain the experts at the financial comparator HelpMyCash.
Spanish entities such as Caixabank and Bankinter have begun to offer profitability on their deposits. However, as HelpMyCash explains: “the interests they pay are not even close to those offered by online and European banking and they also require a high level of connection. If we want to find competitive returns in Spain, we must focus on medium-sized banks.”
Currently, one of the banks that provides the best remuneration without requiring linkage or contracting additional products is BFF Bank, which pays 4.06% APR on its six-month and one-year deposits. These products can be contracted for as little as 5,000 euros, and despite being an Italian bank, it is based in Spain and is taxed like any deposit from a Spanish bank.
And if you look at the European market, the best profitability is found in Italy. Banca Sistema leads the ranking of one-year deposits paying 4.40% APR. However, it requires a minimum amount of 20,000 euros to contract. Fortunately, the offer is so wide that even with just one euro you can take out the BluOr Bank deposit, which offers a return of 4.21% APR in the same term.
If you do not want to have your savings or part of them locked in a fixed-term deposit, an alternative to gain profitability is interest-bearing accounts.
Several entities have launched offers to attract new customers in which they pay interest and even welcome gifts.
An example is the Sabadell Online Account, without commissions and without requirements. Just by opening it you pay interest of 2.50% APR during the first year and up to 30,000 euros. And if you also domiciliate a payroll, pension or unemployment benefit of at least 700 euros, give away an extra 200 euros. A good opportunity to earn up to 950 euros in one year.
If you do not want to direct deposit any income, the EVO Smart Account also offers a 2.50% APR return up to 30,000 euros and extends the interest payment until November 30, 2024.
And if the savings exceed 30,000 euros, the N26 Savings Account does not have a maximum remuneration of 2.26% APR. In order to contract it, you must first open a checking account, such as the Standard Account, which is free, and then open the savings account to obtain profitability.
"It is important to keep in mind that these offers usually have a certain duration, generally one year, and that when accepting cash gifts, some entities may ask for a certain connection, such as a permanence of several years," the experts warn, adding: " This does not mean that we cannot take advantage of these promotions, but it is essential to read the details carefully to avoid surprises.
Another option to protect money from inflation are monetary funds, whose profitability attempts to approach interest rates. At a time when they are so high, it is a good way to obtain a higher return than savings accounts and most Spanish deposits without losing liquidity.
The InbestMe Savings Portfolio in euros is a monetary fund whose expected profitability is 3.25%. By investing in short-term fixed income products, such as Treasury Bills or deposits, it copies the ECB's interest rates and takes advantage of raises to improve your profits.
"At HelpMyCash we recommend diversifying money into various products and terms to optimize our financial management. For example, you can allocate part of your savings that you do not need in the short term to a fixed-term deposit to obtain a higher return, another part to a monetary fund that allows you to access your capital in case of emergency, and the money that you use daily in a remunerated account so that it does not remain in a checking account without generating benefits", conclude from HelpMyCash.