Deposits and interest-bearing accounts are experiencing a boom following the rate hikes of the European Central Bank (ECB). And, although its current profitability is beginning to be in danger due to the foreseeable drop in official rates in the short or medium term, its interest remains attractive.

However, savings products are not the only ones whose interest has skyrocketed among savers: monetary funds are also experiencing their own golden age. Its assets grew last February by 139% annually to reach 13,011 million euros, according to data published by Inverco.

High rates are increasing interest in monetary funds. And the fact that the rate cuts are being delayed (now some experts point out that the first drop could come at the end of spring) has favored the entry of money into these super-conservative products.

But why do they attract so much attention from savers? These products, which have a very low risk (one out of seven), try to achieve a return close to the official interest rates, which currently reach 4.5% in Europe, explain sources from the financial products comparator HelpMyCash.com. To achieve this, they invest in short-term fixed income, such as Treasury bills or deposits.

As it is a low-risk product, it has become an alternative for the most conservative savers who want to diversify their money and, at the same time, always have it available. Taking into account that rates remain at 4.5%, these products continue to have a high profitability with controlled risk, they point out in HelpMyCash.

Last year Revolut launched the Flexible Account, a very low-risk monetary fund that currently has an expected return of up to 3.97% for the euro version. Savers who prefer to invest in dollars can earn up to 5.4%. This product allows you to add and withdraw money at any time and can be tried from one euro.

Another similar product with an attractive profitability is the InbestMe Savings Portfolio, with a remuneration of up to 3.6%. It can be contracted from 1,000 euros and the client can withdraw money at any time. This portfolio is made up of two low-risk monetary funds.

Although their profitability is similar to that of deposits, monetary funds allow you to contribute money regularly and withdraw it when needed, so they are more flexible. In this sense, they are more like an account, but with a higher profitability.

Of course, although these funds now have a very high profitability, we must not forget that interest rates are going to fall and that will affect the interest of these products. So when that happens, you will have to think about where to reinvest the money.

Monetary investment funds can be combined with fixed-term deposits, which ensure good long-term interest. Of course, its profitability has been declining in recent weeks, they say in HelpMyCash.

Right now, with a term of one year, the Novum Bank deposit at 3.9% APR, the Mano Bank deposit at 3.75% APR and the Banca Progetto deposit at 3.60% APR stand out. The first is protected by the Malta Deposit Guarantee Fund, the second is covered by the Lithuanian one and the third, by the Italian one, all with the same coverage as the Spanish one.

Deposits at 4% are only short-term. An example is the six-month deposit from Banco Mediolanum at 4% APR, which allows you to invest from 10,000 to 50,000 euros. This entity is protected by the Spanish Guarantee Fund. To take advantage of this profitability, it is necessary to domiciliate a payroll or pension of at least 700 euros in the bank or maintain a minimum of 3,000 euros in investment products.