With the end of the Christmas holidays, the fixed term deposit that paid a 4% APR in Spain, offered by the Portuguese Banco BiG. In this way, savers who were looking for a extra income In the short term, they have one less option since January 6, however, some promotions still maintain attractive interest rates, paying up to 3.75% APR.
Specifically, it is the same entity that promotes this 3.75% APR for a period of 3 months, compared to the 2 months of the deposit with a 4% APR that was offered as a ‘New Year’s Eve Special’ promotion until this Monday . In this way, although liquidity is sacrificed for another month, it can be a lot more profitable for the saver the product that is still available. If a user invests, for example, 10,000 euros over 2 months with a 4% APR, the remuneration obtained at maturity would be about 67 euros gross. However, if you deposit the same amount over 3 months with a 3.75% APR, the income after that period would be about 94 euros gross.
Therefore, even though the interest is smaller, it is essential to also review the term for which the savings are deposited, since the longer it is, the more interest will be generated and, therefore, if the difference between the remunerations is not very high, you can earn more money with a longer-term product and a somewhat smaller percentage.
In exchange, the saver blocks access to his money for longer, since the fixed term deposits They do not allow trading with the money disbursed until the product expires. Therefore, it is not an alternative to allocate savings from the emergency fund; for this liquidity, one of the most attractive options is paid accountswhich pay interest on the account balance without denying the client access to that money.
Long-term deposits for higher income
Those users looking to increase this benefit can opt for deposits with even longer terms that guarantee interest for a longer period of time, compared to paid accounts, which generally adapt the percentage they pay to the market conditions with prior notice to the client.
Specifically, in the European deposit market you can find offers for one year or even more that maintain interest rates close to 3%, which ensures the saver will pay that interest during the contracted period. In this way, if the interest rates of the European Central Bank (ECB) continue to decline in 2025, thus meeting the forecasts, this path will not affect the product already contracted and the saver will be able to avoid these cuts. However, the risk of having the money blocked for longer and not being able to invest it in other products is assumed.
Through the Raisin platform, which offers deposits from foreign banks in Spain, you can get up to 3.10% APR for 2 years and 3.05% APR for 3 years. Meanwhile, hand in hand with the Spanish bankingthe highest long-term interests come from Pibank, which pays 2.83% APR for 12 months, and Wizink, with 2.50% APR for 18 months and 36 months.
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