The reduction of interest rates of the European Central Bank (ECB) at 25 basis points brings with it a cut in profitability that banks offer in their low-risk savings and investment products. Given the low interest rate policy that the ECB is taking, savers can bet on the long term deposits to ensure high remuneration, which can still be found in the banks’ offer, for a longer period of time.
Specifically, time deposits have already suffered some cuts in their returnsHowever, with interest rates still high, savers may find long-term remuneration above the 3% APR that, if they hire now, they are insured for longer. In this way, even if the ECB rates continue with their cuts, the investor will be remunerating their savings with a higher interest.
A user who bets on a fixed term deposit 3 or 6 months is only guaranteed profitability during that period of time, since once it reaches expiration, if you want to renew the product, you probably will not be able to contract the same conditions. But, if the saver takes the risk of depositing his money for several years and during that period the interest offered decreases, he will have ensured a higher profitability.
However, users who want to join this strategy must take into consideration the cost of having the deposited money immobilized. The savings invested are blocked during the contracted period of time, so the client loses the access to your liquidity and you cannot use it if you need it. Therefore, it is important to ensure that the bank allows you to cancel the product in advance, in this way, although the ideal way to guarantee the remuneration is not to have the money deposited, if necessary the client could turn to it.
These are the long-term deposits that pay the most
The best long term deposits to ensure high profitability come from the hand of foreign banks, whose remunerations are higher than those offered by the entities attached to the Deposit Guarantee Fund (FGD) of Spain.
Specifically, through the Raisin savings platform, where European entities promote their deposits in the Spanish market, the bank that pays the most in one year is Banca Progetto, from Italy, which offers a 3.40% APR for investments between 10,000 and 100,000 euros. The remuneration coincides with that offered by CA Auto Bank, also Italian, whose minimum requirement is 30,000 euros and the maximum is 100,000 euros.
For an even longer term, 2 years, both Banca Progetto pays 3.34% APR and CA Auto Bank 3.25% APR, under the same conditions.
However, these entities do not allow clients cancel the product in advance, so during the contracted period the savings will remain blocked. In addition, interest is paid upon maturity, that is, the client will not obtain the interest generated until the term has elapsed.
Deposits with long-term Spanish guarantee that pay the most
For savers looking for products that operate under the Spanish FGD, the highest offers come from one-year deposits since, except for Cetelem, which pays up to 3.18% APR for 24 months, the rest of the entities they do not offer remunerations above 3% for terms longer than twelve months.
The entity that pays the most in one year is Cetelem, BNP Paribas’ commercial brand in Spain, which also pays up to 3.18% APR for any amount of money, since it does not establish minimums and maximums to be remunerated. However, the deposit APR varies due to the maintenance commission of the linked checking account. In this case, the bank allows early cancellation of the deposit.
On the other hand, Pibank offers a 3.03% APR also for any amount of money. Furthermore, the entity allows cancel the product before expiration.
Finally, under the Spanish FGD, the offer from Banco Mediolanum stands out, which remunerates money with a 3% APR for deposits between 10,000 and 100,000 euros. And, although it also allows you to cancel the product in advance, it requires some extra linkingsince the entity requires that at the time of maturity the holder of the deposit has managed assets of at least 3,000 euros in the entity or that he or she has a payroll or direct deposit of 700 euros or more at the end of the month prior to maturity. of the deposit.
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