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HomeLatest NewsEuropean banks already remunerate twelve-month deposits with 3%

European banks already remunerate twelve-month deposits with 3%

Date: February 5, 2023 Time: 00:11:05

The most conservative saver, the one who places his money in deposits, will be able to lose the year hiring a 12-month deposit with a 3% return. And it is that just a couple of weeks after the European Central Bank (ECB) launched a ‘hawkish’ message on interest rates, there has been a cascading review of fixed-term deposits by small and medium-sized banks , which deposits can be contracted through the Raisin platform (which gives access to extra-typed products).

And it is that the promise of the body that directs the monetary policy of the eurozone to continue raising the price of money in the next two meetings of the first quarter is an incentive for the remuneration of deposits to continue rising. However, these movements come from the hand of small and medium-sized European banks, which have more difficulties when it comes to financing themselves in the capital market.

In this new scenario, Privat Banka, from Slovakia, has raised the remuneration of its one-year deposit to 3% APR, which is available from 5,000 euros. Thus, for an imposition of 10,000 euros, the reported earnings would amount to 300 euros. Another entity that has raised the remuneration of its deposit to one year is Banca Progetto. The entity of Italian origin has also raised the remuneration of its 12-month product to 3%.

In the longer term also more profitability. Two-year deposits have also seen the remuneration they offer improve, going from 3.05% at Fjord Bank and Banca Privata Leasing, to a not inconsiderable 3.39% marketed by Banca Progetto. The banking product ensures a gross profit of 680 euros for an investment of 10,000. Privat Banka has also revised the remuneration upwards to 2.34%. These same two banks have also triggered the remuneration of three-year deposits, reaching a range of between 3.34% and 3.43%, bordering on the 3.45% that Younited markets at five years. For this case, a tax of 10,000 euros would allow a gross profit of up to 1,050 euros.

These deposits, in addition to being contractable through Raisin, are under the protection of the Deposit Guarantee Fund of each country, which protects with 100,000 euros per owner and account. When hiring, experts bet on short terms, one year, so that there is no loss of opportunity in the event that they continue to rise in line with rates.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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