Spanish banking, at the bottom of Europe in deposit profits

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Spanish banking, at the bottom of Europe in deposit profits

Although the profitability of Spanish deposits skyrocketed last year, they are still far behind the euro zone countries. In addition, not all banks are moving to increase the rate at the same speed and the 4% barrier seems unattainable.

The average interest on deposits last September was 2.33%, according to data from the Bank of Spain, compared to 0.37% offered last year. But it is medium-sized banks and online entities that lead these developments, while large banks lag behind, as revealed by HelpMyCash analysts.

Currently, the Spanish entities with the most profitable deposits are EBN, Pibank, Banca March, Self Bank, Banco Caminos, Cajamar, MyInvestor, Miraltabank and Caixa Guissona. All of them sell deposits with a term of one year and interest of between 3% and 3.35% APR and all are protected by the Spanish Deposit Guarantee Fund (FGD).

At the big banks, things have changed. BBVA offers a one-year deposit at 2.75% APR, but not in general, so not everyone can contract it, and CaixaBank sells a one-year deposit at 1% APR, whose profit can be increased by contracting other banking products and services. And Santander has no trace of these products on their website.

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In any case, the remarkable increase in the profitability of deposits in our country will decrease if we compare it with the figures of other countries in the euro zone.

Spanish banks pay 30% less than Italian and French banks

Spanish banks are sixth from the bottom. They pay 30% less than the Italians and the French, for example, according to data from the European regulator. “For this reason, we maintain the importance of opening the possibility of contracting deposits from other neighboring countries. This is not the time to leave the savings unpaid. “You must take advantage of the high returns that there is less risk,” they say from HelpMyCash. And, in addition, deposits from Italy or France, for example, have the support of the Deposit Guarantee Fund, for greater security for the saver.

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In search of 4%

Many savers decided to try to dig up to 4%. And the truth is that it is possible. There are several entities, mainly foreigners, whose deposits in the market reach even more than that number.

“The best deposits have a higher profit than Treasury bills, which in the most recent auctions moved between 3.5 and 3.7%,” they told HelpMyCash.

BFF is on the radar of many savers. This bank is not Spanish, but Italian and is protected by the FGD of that country, but it has a branch in Spain, so for practical purposes it is like opening a deposit in a national entity. Its one-year deposit has an interest rate of 4.06% APR and its six-month fixed term, 4.32% APR.

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Another foreign entity with a branch in Spain is Banco BiG, protected by Portugal’s FGD. Currently, its most profitable proposals are three and six month deposits at 4 and 4.25% APR respectively.

A year’s profit

The highest one-year return is not in Spain, but abroad. Italian, Lithuanian, Portuguese or Estonian banks pay back more than 4% in one year. “And the good thing is that all these deposits can be contracted online from Spain,” clarified sources from the comparator.

The most profitable option with a term of one year is the Banca Sistema deposit at 4.30% APR. They are followed by Banca Progetto and BAI Europa, which pay 4.20% APR. Sistema and Progetto are both Italian banks and protected by that country’s FGD, while BAI Europa is Portuguese and operates under the Portuguese FGD umbrella.