The decision of European Central Bank (ECB) to delay the decline in interest rates from spring, as the markets expected, to summer, specifically to June, has caused Spanish banks to change direction in their deposit business and, after lowering their profitability, they have raised it again. Despite this comeback, they are still less generous than their competition from the Euro zone.
According to the latest data from the Eurobank, the average profitability that Spanish banks offered in February for their deposits in installments less than one year was located in the 2.37%, which represents an increase of almost a point and a half compared to the same month of the previous year. But it is lower than that given by the european banking at that same period, which reached 3.2% on average.
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The same happens with the deposits for more than one year maturity that the Spanish banks paid in February with an average interest of 2.47%in front of 3.02% of the entities of the eurozone. While in terms of more than two yearsour bank remunerated with a 2.4% and the whole of the Euro zone with a 3.17%.
These differences occur even after Spanish banks have increased the interest on their fixed terms to exceed, in the best cases, the 4% profitability.
“A few months ago it seemed unlikely that returns close to 4% could still be achieved today, but the reality has been different. Although several banks began to lower the interest on their savings products months ago due to the foreseeable rate reduction that ultimately did not arrive, the cuts have been moderated and some banks have once again raised the interest on their fixed terms“, points out Javier Mezcuapersonal finance expert at HelpMyCash.
This change in strategy will mean that savers whose deposit is now due will have a much better outlook than they could have expected a few months ago, and will be able to renew their fixed deadlines ensuring a attractive interest rate for several years.
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And the fact is that deposits have become refuge products after the rise in the inflation and in many cases they are giving interests that are beating it, taking into account that March closed at 3.2%, according to data from the Statistics National Institute.
The deposits that they pay better the savers are those of short term. The most profitable is Big Big Bank Deposit, with a nominal interest rate (TIN) of 4.1% to six months. It is closely followed by MyInvestor, which gives a 4% APR over a period of three months.
The same profitability, 4% APR, gives the deposit to six months of Mediolanum Bank and bordering on this interest, the deposit is placed at three months Cetelem with 3.96%.
Equal return gives Novum Bankbut within a period of 12 months, followed by Finantia Bank that pays 3.6% APR for one year. In the longer term, two years, the most generous are the deposits of Progetto Bankingwith an interest of 3.59%, SmeBankwith 3.49%; Haitongwith 3.49%; CA Auto Bankwhich offers 3.49%, and Banking Systemwith 3.49%.
In this context, analysts recommend savers, especially the most conservative ones, that take advantage of the moment and hire depositssince when the ECB begins to lower interest rates, banks will do the same with their fixed terms.
They anticipate that rates could be close to the 2% at the end of 2025so the 4% profitability that can be achieved now will disappear, except in specific offers aimed at attracting clients or in banks that need liquidity, HelpMyCash warns.
They emphasize that “savers who want to ensure a attractive interest rate They cannot sleep and those who do not need their savings soon may consider take out a long-term deposit to ensure a high interest rate when rates start to fall.”
