A year ago it was unthinkable that bank deposits could give returns of almost 4% APR over two years. However, in recent months online and foreign banking has been in a continuous bid to attract money from new customers.
The repeated increases in interest rates by the European Central Bank (ECB) have a direct impact on the profitability offered by banks on their deposits. For this reason, since the last increase on May 4, which reached 3.75%, practically every week a bank in the euro zone increases the remuneration of these savings products.
Among the wide offer, short-term deposits are especially striking, where interest is close to 4% APR.
In Spain, traditional banking continues without making a move and they do not offer great profitability on their deposits. On the other hand, online banking is matching its offer to European competition, as is the case of BFF Bank —formerly known as Banca Farmafactoring— with its Cuenta Facto deposits.
These deposits can be opened with a minimum capital of 5,000 euros, a fairly affordable amount, and set a maximum amount of three million euros.
The three-month Facto Account Deposit offers a 3.03% APR return. A remuneration that rises to 3.55% APR in terms of six, nine and 12 months.
“It should be remembered that the Deposit Guarantee Fund (FGD) covers up to 100,000 euros per bank and owner. It is not advisable to invest more than that amount in one or several products of the same entity because, in the event of bankruptcy, we would not be able to recover all of our money”, they point out from the comparator, and add: “Diversify the capital in different products and banks is a smart way to optimize our money and reduce risks.â€
From HelpMyCash they suggest taking a look at European banks before hiring a fixed-term bank deposit. The reason is none other than their better remuneration, especially within a year.
At this moment, there are two Portuguese banks that are at the top of the 12-month ranking.
Haitong Bank has stepped on the accelerator and pays interest of 3.75% APR for one year, and amounts to 3.98% APR on its two-year deposit.
You can hire a deposit at Hatong Bank from 10,000 euros and you can deposit up to a maximum of 100,000 euros. The maximum that the Portuguese FGD covers.
For its part, Bai Europa matches the offer of Haitong Bank, with its deposit at 3.75% APR at 12 months; and it is also equal to that of the six-month Cuenta Facto, with a 3.55% APR.
Like the other Portuguese bank, the amounts to open a deposit in Bai Europa range from 10,000 to 100,000 euros.
Contracting a deposit in a European bank can seem very tedious for those who are not familiar with this type of savings product.
However, thanks to platforms like Raisin it is just as easy as doing it with a bank in Spain. This German website is in charge of managing all the documentation with the chosen bank completely free of charge, online and in Spanish. In addition, all its products are covered by the FGD of the country to which the bank belongs.
