In the last tender of the year, retail investors have turned to buying government debt. Households are seeking a return on their savings above the low remuneration offered by large banks for deposits, and are increasing their holdings of these assets to record highs. But are there other options that offer higher returns?

The last auction of the year of Treasury bills leaves 30% of government debt in the hands of individuals seeking a better return on their savings than that offered by banks for deposits. Although persistent inflation and rising interest rates have evaporated a large part of the savings accumulated by households during the sanitary crisis, the high yield on short-term government bonds has spurred the purchase of these assets.

While during the first two quarters of the year, Spanish banks suffered the biggest drain of deposits in Europe, the public increased its investment in the Treasury to over 28 billion euros in 2023, an unprecedented record. For the first time, Spanish households have become the main owners of Treasury bills, which account for almost one out of every three euros invested.

The high yield offered by short-term government bonds has reached 4% (3.7% in the last auction) compared to the 2.45% average offered by traditional banks for deposits. As for ten-year debt bonds, the yield surpassed 4% given the forecast that central banks would keep interest rates high for longer than expected.

A better return on your savings

The boom in the purchase of public debt is because, on the one hand, it responds to the needs of consumers at a time when traditional banks are not offering sufficiently attractive returns on savings and, on the other, to an apparent lack of alternatives readily available to the public.

This, however, is not exactly true. A product such as Litigation Funding, which 11Onze recommends, offers a higher fixed annual return than bank deposits and Treasury bills. In the short term, 1 or 2 years depending on the amount, it generates returns of between 9% and 11% with the peace of mind that an insurer covers our clients’ capital.

In this context, we should mention the safe-haven asset par excellence, gold. On 4 December, it reached its highest price ever, 2,100 dollars per ounce, and in the last 12 months, it has gone up by almost 11%, confirming itself as one of the best options for protecting our savings. Preciosos 11Onze makes it easy to buy gold, at the best price and with total security.

If you want to find out how to get returns on your savings with a social justice product, 11Onze recommends Litigation Funding.