He European Central Bank (ECB) decided last June to start lowering interest rates after two years of increases. The banking organization sees the end of the inflationary crisis near –the CPI (Consumer Price Index) in Spain below 2%– and pretend to return to improve the financing capacity of familiescompanies and States, lending money at better prices.
This drop in rates, however, is bad news for savers, who are seeing how banks are decreasing the profitability of their savings products more popular as they now have the possibility of financing themselves more cheaply.
In this way, if a few months ago it was relatively easy to find deposits and paid accounts that they gave you even more than 4% for your money, nowadays it is an impossible mission.
“Banks are paying less and less for their clients’ savings. In September, The average interest on Spanish deposits fell to 2.45% compared to 2.61% that they paid the previous month, according to the Bank of Spain”, they point out from the financial comparator HelpMyCash.
Thus, with the arrival of the month of November, the fixed terms with which to earn money from the first euro, that is, those that do not require any minimum amount for contracting, they barely reach 3%as is the case of Evo Banco, which has lowered its four-month deposit from 3.05% to 2.85% APR; or Pibank, whose 12-month fixed term has stood at 2.83% APR after offering 3.03%. Openbank also reduced the profitability of its six-month deposit from 3.07% to 2.78% APR.
Regarding remunerated accounts, Evo Banco has also reduced the interest on its Smart Account from 3.05% APR to 2.85% APR. Trade Republic followed suit last month and now pays 3.3% APR instead of the 3.56% it offered in September. Other entities, such as Unicaja, Banca Progetto, Klarna and Lea Bankhave also cut the interest on their accounts over the last month.
“These cuts are not the last”sources warn HelpMyCashwhich explain that “if the European Central Bank continues to reduce its interest rates, banks will continue to lower the interest on their accounts.”
Now what: accounts or deposits?
In this context, experts currently advise contract deposits before remunerated accountssince the great disadvantage of this last product is that the bank can cut them at any time, giving only two months’ notice, while with a fixed term The saver will be ensuring profitability for as long as the deposit lasts, regardless of the cuts made by the European Central Bank.
“Although the best accounts continue to offer attractive interest rates, Deposits can help protect us from rate cuts“, they highlight in HelpMyCash. “Fixed terms have a guaranteed profitability, so if today we take out a deposit at 3% for three years, we ensure that profitability throughout that term even if rates continue to fall,” they justify.
Right now, the best deposits are available through Raisin and marketed by Banca Progetto. It pays 3.4% APR for one year, while for two years you can get 3.34% APR and for three years, 3.19%.