The escalation of the interest rates of the European Central Bank (ECB) led to the price of money in the month of July until the president of Christine Lagarde adopted a more restrictive monetary policy. And this has caused new movements in the deposit market, where Italian banks are being the most aggressive in remunerating fixed-term deposits, even exceeding the official price of money.
Thus, Banca Sistema has given the ‘sorpasso’ to Banca Progetto, which up to now has marked the ceiling of profitability in fixed-term deposits in Europe with 4.20% APR. The movement made by its most direct competitor, Banca Sistema, in recent days, has allowed it to go from offering a remuneration of 4.15% to 4.40% APR. This latest rise positions it as the bank with the most profitable deposits at the moment in Europe.
The Italian entity takes the lead and not only leaves Banca Progetto behind but also advances, as we said, the interest rates set by the ECB. Specifically, Banca Sistema is 15 percentage points above, and sets a comeback in the race for time deposits. For their part, the best products from Spanish entities come to offer up to 3.3% APR for one year.
Banca Sistema offers 40 euros more than Progetto
Regarding the conditions established by Banca Sistema, investors will be able to opt for these fixed-term deposits from the amount, or what is the same, 40 euros more than in Banca Progetto deposits. They may also deposit up to a maximum of 100,000 euros.
In this same scenario, interest on remunerations will be paid at maturity and is also backed by Italy’s Deposit Guarantee Fund (FGD), guaranteeing deposits with a limit of 100,000 euros per depositor in the event of bankruptcy. In addition, no tax withholding is assumed since in Italy no tax withholding is made to non-residents in the country. Both products can be contracted through the Raisin platform.
Banca Sistema, the first in the ranking of 2-year deposits
In the list of twelve-month savings products offered by European banks, Haitong also stands out. The bank offers a remuneration of 4%. It is followed by Fjord Bank, with a one-year deposit as well, but whose profitability is on the verge of 4% with a 3.97% APR. The same percentage is marketed in their time deposits by both Klarna and LHV. For their part, Coop Bank and BAI Europa place the remuneration of their fixed-term deposits at 3.85% APR and another Italian bank, Banca Privata Leasing, closes the list above 2%.
Likewise, Banca Sistema is not only the bank that offers the most interesting twelve-month deposits, but is also crowned with the two-year offer. The transalpine entity has a product aimed at the most conservative savers that remunerate with 4.36% APR compared to 4.22% APR offered by Progetto. However, the latter establishes a minimum of 10,000 euros, while his rival demands a minimum of 20,000 euros. In the case of making this investment, the profits would be around 1,780 euros in interest.
