The increases in interest rates by the European Central Bank (ECB) encourage deposits in the euro zone. In this race to attract customers and liabilities, European banks have taken the lead and are offering one-year fixed-term deposits that break the 4% barrier and even make it possible to offset the rise in Euribor. With regard to the number of orders that they make available to customers, 76% of those that can be contracted today are from entities -most of them market their deposits in Spain through the online platform raisin- and s. correspond to Spanish entities.
These time deposits behave in the same way as the Spanish ones. The investor must place an amount of money depending on the minimum amount that each bank requires and similar, respecting the maximum allowed. After the expiration of the determined term, the amount delivered plus the agreed interest will be obtained.
The Italian bank leads the supply of deposits
The interest rates offered by foreign banks on their deposits have exceeded the psychological threshold of 4% APR, equaling the official price of money in the euro area and practically tying with the Euribor. Through the European platform Raisin, the Italian bank Banca Sistema has managed to establish itself as a leader in remunerating savings. Specifically, it offers 4.15% for one year. The minimum amount to open the deposit is 20,000 euros, which would give access to a gross profit of 830 euros that the client would receive at the expiration of the agreed term. The maximum amount is 100,000 euros.
In addition, like the Spanish, they are protected by the Italian Deposit Guarantee Fund (FGD), which covers up to 10,000 euros per client and entity.
Haitoning is also equal to the Euribor. The Portuguese bank sells a one-year deposit with interest of 4% APR, also from 20,000 euros, which would yield a profit of 800 euros. The same is true for the Italian bank Banca Progetto, which offers remuneration of 4% APR, with minimum and maximum amounts ranging from 10,000 to 100,000 euros respectively.
Below 4% interest there are different options, but even so, they improve the best Spanish deposit, offered by MyInvestor, with 3%. They are the fixed-term deposits of the banks of Sweden, Klarna Bank with 3.95%, Lithuania, Fjord Bank with 3.9% and Estonia (Coop Pank and LHV Pank at 3.85%).
The FGD protects your money in foreign banks
As a catch, these deposits do not allow early cancellation. Regarding the guarantee of that money, it is crucial to take into account in which bank the deposit is contracted and, especially, in which country it is based. All banks based in the European Union are backed by the Deposit Guarantee Fund (FGD) that will cover up to a total of 100,000 euros per customer and per bank.
However, it will be the Guarantee Fund of each country that will ensure the protection of the natural persons not only of the countries but also of all the deposits and accounts of a client in a bank. However, if the investor’s monetary amount exceeds this figure, it would no longer be guaranteed in case of facing any problems.
