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Friday, January 27, 2023

Deposits in the Euro zone give an average of 70% higher yields than in Spain

Las deposit return There has been a correction after a sharp increase in interest rates by the European Central Bank (ECB), but very uneven Spain is in the tail van among eurozone countries with an average wage of less than 1%. a) yes, In the Eurozone, 73% more are paid on average For saving than Spanish geography. Although the offers look different, most entities operating on Spanish soil have not entered into liabilities aggressively and the big banks are still on the sidelines.

Specifically, according to the latest data available from Eurostat corresponding to last November, the average interest on fixed deposits of up to two years in Spain is 0.69%, compared to 1.20% in the euro area. In the longer term the difference is even greater (86%) with 0.97% versus 1.81%.

Italy and the Netherlands are the countries where bank deposits offer the highest yields for 24 months, at over 1.8% on average. They are followed by Estonia and Finland with yields of 1.73% and 1.63% respectively. At the other end is Cyprus, with barely 0.11% interest. Greece gives 0.20% and Portugal 0.35%. Besides Spain four other countries yield less than 1%.

In the case of more than two years, Estonia ranks first with almost 3% (2.94%). Luxembourg, Lithuania, Italy, France and Austria also offer more than 2%. Spain is the third member of the Eurozone that pays the lowest, behind only Ireland (0.7%) and Portugal (0.14%).

The most attractive offers on Spanish soil are around 2.50% APR and are from Neobank

In Spain, it is online and newly formed banks that have struggled for deposits in recent months, after several years of remuneration being at record levels, due to a rise in official interest rates. Thus, interest rates are gradually rising and The most profitable offers are around or above 2.5% APR, Renault Bank a few days ago extended its fixed tenure by 24 months to 2.83% APR. Wizinc offers 2.50% APR for 36 months and 2.30% for 25 months, EBN offers 2.40% APR for 36 months. BFF Bank also pays 2.27% APR on its deposits for six months and one year.

However, large organizations are reluctant to enter the fray. The sector is believed to have a great solvency position because of its abundant liquidity And, although it is likely that he will have to pay savers more money in the future as interest rates keep rising, he does not expect higher returns. Banking sources estimate that average rates could exceed 1% or reach a “maximum” of 2%.

Bankinter’s CEO, Maria Dolores Dancosa, is disappointed to see a “normalized” increase in deposits in the short term. From Asufin they see a war on liabilities as “very unlikely” and note that banks are more willing to attract new payrolls. The consumer association says the deposit market is still not experiencing movements because banks have no incentive to do so, as they continue to widen their profit margins on the funding side, where rate hikes are accelerating. transferred from.

Sector and experts rule out liability war as liquidity is still available

The same sources comment that the low remuneration compared to the rest of Europe is also due to “the high cost of the branch network, the bank tax in Spain and the low liquidity gap between liabilities and assets”. Victor Alvargonzalez, founding partner of Nextup Finance, believes that “the largest banks will hold out as long as possible before entering this type of competition, and they will gradually increase the deposit’s remuneration and increase their own cross- Will establish conditions to encourage the selling of financial products.

loss foreign bank deposits Those that can be contracted through the Raisin platform are more generous. Remuneration has always been a step ahead and has reached 3.35% APR at a French bank, 3.19% APR at a Lithuanian bank or 3.05% APR at an Italian bank. for his part, the person in charge fintech In Spain, Monica Pina believes that “the ECB has revived the competition for savings and almost no bank will be able to ignore it in the long term”. Thus, he believes that “savers can continue to wait for an increase in interest rates and a higher number of offers.”

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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