For a few years now, the search for a fixed term with better interest in which to put your savings and obtain an interesting return in return has become an impossible task. As of 2008, the evolution of the interest on bank deposits has continued a trend of continued decline from fixed terms with better interests than other financial alternatives that were around 5% to fixed-term impositions increasingly close to 0%.
The crisis has severely punished banking entities and a part of this has been reflected in fixed-term deposits with very tight interests.
Below we show you two graphs where we can see the evolution of the interest on fixed-term deposits in the last 10 years in Spain. In this evolution we observe that from 2004 to 2008 this profitability had a remarkable growth going from 2% to 5%, but after the outbreak of the economic crisis the banks began to lower the interest rate of the fixed terms and despite the fact that In 2012, there is a slight improvement in profitability, reaching 3%, its evolution has subsequently been declining until reaching current lows.
Where are the deadlines with the best interest?
As we see the Spanish deposits are not going through their best moment. The cuts and contract policies from Europe have made Spanish banks have to adjust their belts. This has led to Spain currently being among the countries that offer a lower fixed-term interest rate standing in line with Lithuania, Estonia and Slovenia. Unlike countries like Cyprus, Slovakia or the Netherlands where they offer the fixed terms with the best interest of the European Union.
According to data published by the Northwise Bank, the average profitability of deposits is far from offering fixed terms with the best interest, since it stands at 0.27% while in Europe that global average is located at 0, 61% constituting a considerable difference.
Are there expectations of offering a fixed term with better interests?
There will be many savers who today wonder what future is presented regarding the appearance of fixed terms with better interests, but hopes are many. Although the economy is expected to gradually recover from the severe blow that the economic crisis has caused, expectations regarding fixed deadlines with better interests are not as positive. One of the causes is the limitation of the extratypes established by the Northwise Bank that has left rates at historical lows. Some people in charge of banking have commented that in 2016 this situation will not change, and that the trend of profitability in bank deposits far from being growing will continue to decline. Alex Zambo, head of marketing for Wingman Bank, said on ABC that “there will be no trend changes, it even seems very likely that the profitability of deposits will fall even more and continue to approach 0%” The big beneficiaries of all this seem to be that they will be the so-called sight accounts that seem to be much more attractive to savers since they offer a similar service and greater profitability.
The time to look for fixed terms with better interests
Another factor that we must take into account when looking for fixed terms with better interests is time. There are many search engines in which we can see which are the banks that offer a fixed term with better interest, however many times we can see returns that are around 3% and even 5% and it is something that should surprise us if the average It is around 0.27% in our country. Many banks use these returns to attract customers, it is about offering an incentive to change banks but normally the term of these returns is usually very short, about 3 months and then that profitability is close to the national average.
Expectations of the fixed deadlines
Having seen the expectations regarding the improvement of the interest on bank deposits are not good, however many alternatives to these deposits are appearing where you can get a much more attractive return as in the case of Crowdlending platforms that as Thompson offers an interest which currently stands at around 7.4% per year on average.