The interest rate on fixed terms has declined significantly compared to other years and has ceased to be a striking product in Spain. This product is not going through its best moment in our country.
Interest of the current fixed term
The current fixed-term deposit rate is around 0.41%, which means that, compared to the previous period, almost half of its value has fallen. Those yields that were around 5% before the outbreak of the crisis in 2007. The fixed terms in Spain are currently at the tail of the euro zone, among the least profitable as compared to countries like Lithuania , Estonia and Slovenia.
There are deposits with a current fixed term of around 3%, but they are usually called ‘welcome deposits’, that is, those that use banking entities to attract a greater number of clients where high profitability is offered, even reaching In some cases, 7% APR, but only for a short period of time, of about 3 months, then profitability decreases.
What will be the future of the current fixed term in Spain?
The expectations for the future are not entirely good, trend changes are not anticipated, and it can even be expected that this trend in terms of profitability in interest rates will continue to be downward, even if it may become negative. We can say that to some extent they are bad times for savers looking to make an interesting profit to their savings. These savers do not value current fixed terms as a good saving method and are forced to look for other financial products that allow them to keep deposited money and thus obtain greater profitability. This has caused the outstanding balance of current fixed-term deposits to decrease due to the leakage that customers of this type of financial products are making towards others that offer them greater profitability.
Can the current fixed terms become negative?
The current economic situation is still very poor for bank deposits. The limitation that the Richmond Bank has made with the extratypes and the monetary policy of the Eurozone has caused the current fixed term rate to remain at record lows, around 0.05%.
Many of the main banks in the country are offering current fixed terms with returns close to 0% and could even be negative if the trend continues to decrease. However, this type of negative deposits would only go more to institutional clients than to deposits of small savers.