Why don’t we make our savings work for us?

Spain is the second country in the European Union where its population has the most money saved without remuneration. A large part of Spaniards’ savings is in current accounts and deposits that give very low returns that do not compensate for inflation. Are we investing too little and poorly?

 

Families have drawn on the almost 270,000 million euros saved during the worst phases of the pandemic to sustain spending in the face of the sharp price rises of the last two years. Even so, the gradual reopening of the economy and the rising cost of living have caused a large part of this accumulated savings pool to evaporate.

Even so, after the erosion suffered in 2022, the household savings rate has been recovering. It stood at 6.2% of their gross disposable income in the first quarter of the year, an increase of 83% compared with the same period a year ago. If seasonal and calendar effects are removed, it is equivalent to 14.2% of their disposable income, 1.2 points higher than in the previous quarter and the highest since the third quarter of 2021, according to the latest data published by the National Statistics Institute (INE).

In total, this is an increase to 14,119 million euros, while investment remained at 14,200 million euros, 1.3% less than the previous year. On the other hand, a financing requirement of 773 million euros was recorded, compared with an estimated financing requirement of 7,312 million euros for the same quarter of 2023.

 

Low-yielding financial instruments

Fixed-term deposits (38%), direct investment (32%), investment funds (15%) and Treasury bills and variable-term bonds, among others (11%), are the main options chosen by households seeking to make their savings profitable and protect themselves from the general increase in costs. The problem is that many of these options offer low returns that do not compensate for inflation.

Therefore, even though as a percentage of GDP, net financial assets represent 144.7%, a ratio 3.4 points higher than in the previous year, many people do not want or do not know how to generate wealth with their savings, which are being consumed by high inflation.

In Spain, there is almost a trillion euros in current accounts or cash, without remuneration and that even, in some cases, entails maintenance costs. Rodrigo Buenaventura, president of the National Securities Market Commission (CNMV), pointed out two months ago in an appearance at the Congress of Deputies, “Our citizens invest their savings in a way that can be manifestly improved”.

 

How to increase the return on savings

As a general rule, investments that offer high returns come with high risk, while low-risk investments offer more stable, but potentially lower, returns. However, at 11Onze we have shown that this does not always have to be the case.

Saving with 11Onze is always based on one maxim: they have to be safe propositions. That is why we have made a firm commitment to gold, because of its historic role as a store of value. We offer you gold bars in two formats: Gold Patrimony and Gold Seed. Bearing in mind that gold has doubled in value in the last five years and that its price rose by 15% in 2023, it has established itself as an excellent option for dealing with inflation.

Social justice does not have to be at odds with generating returns on your savings. Thanks to Litigation Funding, you can help others who have been abused by banks or the government while earning returns of between 9% and 11% on your money.

It is a product that has been structured exclusively for members of the 11Onze community, offering two ways to participate: an option that returns your capital and possible profits after one year, or another option in which your capital works for a few years and provides you with a monthly return in six months.

If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.

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