The bone term deposits They have entered a new phase. Some yields started to improve weeks before the ECB raised interest rates and the trend continues, so that short-term maturities even breach the 1% APR barrier. Small banks and foreigners are the boldest. The large Spanish entities are not in such a rush to offer higher interest rates and, for now, they are resisting. But the rise in key rates, which could reach 2%, represents a change in the configuration of savings and remuneration will inevitably increase, although at different rates, insist the experts. Thus, the invoicing of customer deposits, as ING or BBVA do, has its days numbered.
“The time of 0% returns to the saver is very close to an end”, believes Enrique Lluva, of Imantia Capital, who argues that deposit returns “will of course increase, but more slowly due to a excess liquidity. He explains that “it’s a problem of supply and demand. There’s a lot of savings and little credit, so the money isn’t worth much. When the ECB withdraws its monetary stimulus, forces will stabilize and deposits will naturally increase.”
Of course, the record figure of almost 985,000 million euros that Spaniards have saved, according to the Bank of Spain, will not be able to beat inflation (10.2% in Spain) with deposits, even if it will mitigate its impact.
Spanish families saved a record figure of 985,000 million euros
The highest interest rates are offered by European entities through the platform Grape. The Czech J&T Banka already exceeds 2% APR (2.02%) in five years. The Italian Banca Progetto gives an APR of 1.94% for three years, PrivatBanka (Slovakia) offers an APR of 1.79% for five years and the French Younited leases 1.70% APR for three years. In the shortest terms, Banca Progetto is the most generous, with 1.45% APR for one year. At this term, Younited pays 1.30%, while Coop (Estonia) gives 1.25%, Banca Privata Leasing (Italy), 1.20% APR and the Portuguese Haitong, 1.10% APR.
“Rates have started to go up on our platform. In the past few weeks alone, improvements to the one-year and two-year offerings have been steady. This scenario had already been happening for months in the longer term, but it is now that this effect has started to be felt in the shorter term,” says Mónica Pina, country manager for Spain and Ireland at Raisin. And he specifies: “of course, the financing needs are not the same for all the entities and the large Spanish banks have structurally a lot of liquidities. It is likely that it will take time for us to see offers similar to those of Raisin in the deposits of the major Spanish banks”.
In Spain, German Bank reopened the market last May by leasing up to 0.60% APR for 24 months from 3,000 euros. EBN Bank responded with an APR of 0.70% at 36 months, which has just been raised to 1.15% APR from 10,000 euros also for new customers. Banco Finance Spain offers 0.90% APR for 60 months and pibank there Pichincha Bank they give 0.50% APR at 12 months. WiZinkComment remunerates 0.35% APR at 36 months and Banca Farmafactory reactivated its deposits with up to 0.25% at 12 months. Big Bank continues to give 1% at three months, although now in a combined deposit, while Renault Bankthe savings bank of RCI Bank and Services Spain, gradually increased the remuneration of the Tú+ deposit to reach 1.40% APR for two years from 500 euros.
“In practice, a rise in rates should result in a gradual and gradual improvement in the profitability of savings products. More and more entities are deciding to raise salaries. However, not everyone will follow the same strategy. The big banks will take longer to do so. For this reason, it is likely that the increases will not occur at the same time or immediately”, they point out in the financial comparator HelpMyCash, where they state that rent a term deposit “It is a very good opportunity to make money profitable for all those who do not dare to invest.”
Víctor Royo, head of business strategy at Ibercaja, comments that “so far there have only been moves in very small financial entities and oriented towards a strategy of attracting very conservative customers. Whether or not there is an occasional movement, the bet of the country’s most important banks will surely be directed towards the active and global management of the savings of individuals and families with the aim of obtaining returns that can mitigate risk. inflation”.
On the other hand, it is expected that with the increase in the deposit facility at positive rates, banks will stop charging corporate savings as well as personal savings. BBVA charges 0.025% per month to less bound for more than 100,000 euros and ING applies a fixed commission of 10 euros per month (120 euros per year) to customers without payroll whose balance is greater than 30,000 euros. “There will be little justification left for ING or BBVA to abandon the ECB’s negative rates,” market sources say. The decision will depend on the commercial strategy of each entity in a context of strong competition.