Fixed rate deposits have been profitable for years. The collapse of interest rates makes it difficult for the conservative saver to find alternatives for their money. The rebound in inflation, reaching a year-on-year rate of 5.5%, puts even more on the ropes to individuals, whose money is wasting and losing value more and more quickly.
The low profitability of this product does not scare away Spanish savers, who continue to bet on bank deposits as the main vehicle to channel their money. 86% of them have contracted a deposit, according to the VII Savings Barometer of the Inverco Observatory, presented at the beginning of November.
The deposits of Spanish banks barely manage to scratch tenths of performance in the best of cases. However, there are European deposits with returns that exceed 1% and serve to reduce the blow of inflation without the need to make risky investments. These products can generally be contracted through Raisin, the largest European deposit broker. Knowing them is possible from the Finect deposit showcase.
European deposits, in addition to offering above-average returns, are a safe investment: they are backed by the guarantee fund of each country.
Patience pays off
The deposits with which the investor will obtain greater profitability from the market at this time have a common denominator: they are products to invest in the long term and that require keeping the money for several years.
This is the case of the deposit that currently offers the best returns. J&T Banka 60 months is one of the European deposits that offers the best five-year profitability, with an APR that reaches 1.17%. J&T Banka was founded in 1998 in Prague and is one of the fastest growing banks in the region in recent years.
Banca Sistema 120 months, meanwhile, offers an almost even return (1.14%), but in exchange for maintaining savings for 10 years. The minimum amount to contract the product is 5,000 euros, half of the J&T Banca 60-month deposit.
Individuals can find products that combine above-average profitability and shorter investment terms. J&T Banka itself has a 4-year deposit (J&T Banka 48 months) that currently pays 1.08%. The Italian Banca Progetto almost traces that profitability (1.10% APR) in its 36-month deposit.
Cheap and short term
The market also offers some alternatives for those seeking to maximize the relationship between profitability and investment terms. The private client can contract from Spain deposits such as the 36-month and 24-month deposits of Haitong Bank Sucursal España, belonging to Haitong Securities, one of the main investment banks with securities businesses in China. In both cases, both vehicles are around 1% profitability.
Finally, it should be noted that not all profitable deposits require disbursements of 5,000 or 10,000 euros. Some such as the Latvian Blue Orange Bank 24 months combine positive returns (0.41%), availability of savings in a short time (two years) and ease of contracting (from 1 euro).
Finect has investment showcases for those who want to invest in products with more profitability and risk than deposits.
How much would I earn by investing my savings in a deposit?
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