Bank deposits do not compensate for inflation
The timid reaction of Spanish banks to reflect the ECB’s interest rate hike in the remuneration of savings means that profitability is not in bank deposits but in investment.
High inflation continues to erode savings left in the bank. Despite the fact that on 4 May the ECB raised interest rates again, for the seventh time since July 2022, bank customers are receiving an improvement in the remuneration of their deposits in dribs and drabs.
This has led to a deposit flight by many families who have decided to diversify their savings by taking their money out of banks in favour of other products and investments that offer a higher return. This situation has been aggravated by fears about the safety of deposits due to the string of bank collapses in recent months.
In Spain, the best deposits give a yield of almost 4%, which means that in the best of cases, they do not compensate for the deterioration caused by the current inflation rate of 4.1%, or even less if we take into account accumulated inflation. Nevertheless, we have prepared a comparative table with the most profitable deposits currently offered by banks.
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