The bank stops charging for deposits and prepares to pay them

If confirmed, an almost uninterrupted downward trend in interest rates would be broken. 14 yearsIt started in October 2008 after the Lehman Brothers debacle that marked the beginning of the Great Financial Crisis. Institutions already first step. banking, that is stopped charging companies for new time deposits Junean almost uninterruptedly maintained punishment since January 2019 as a result of the low and negative rate policy European Central Bank (ECB) He tried to revive the euro economy.

Thus, the sector undertook to pay a price to the companies. 0.33% average interestcharged them 0.09% in May and 0.24% at the beginning of the year. In addition BBVA stopped taking commissions of 0.025% per month or 0.3% per year this August. private customers A step taken by the small company, with fewer contract products and account balances exceeding 100,000 euros set in January 2021 Engineer Box and that doesn’t seem to be excluded ING to terminate.

First step

for now they are just started to pay for some deposits small assetsLike Deutsche Bank, EBN, Pibank and Renault Bank. Only among adults Sabadell recently started paying 2%, but for a digital account where it wants to gain customers from this segment where it lags a bit. Contrary to 2008, the industry is currently high liquidity levels, so you don’t need to initialize it to capture resources. Another thing is that hooks in repositories attract customers. In any case, and with reference to this, market leader CaixaBank has already reiterated that its goal is to continue prioritizing. mutual fund marketingwhich is more profitable for banks because of their commissions.

The Catalan entity expects to pay interest. 30-35% of your deposit and only charge them with the equivalent 70% of the market rate of interest. Today, experts expect the ECB to raise rates to somewhere between 1% and 2%. Considering that the inflation in Spain has exceeded 10% and is expected to remain high in the coming months, the increase in deposit fees will increase the customers’ expectations. continue to lose purchasing power for savings, although slightly less than if the liability remains unpaid.

The effect of inflation

Behind this change in the commercial strategy of Spanish banks, unimaginable just a year ago, there is a ruthless inflation increase and the result monetary policy tightening To combat this, central banks’ payment of Liability is closely linked to: The price of money set by the ECB. In July 2008, at the dawn of the previous crisis, the response rate was 4.25% and Spanish establishments paid an average of 4.2% to households on deposits in the context of tight liquidity following the ‘subprime’ mortgage boom in the United States. last year.

From then on, the monetary authority began to cut rates to save the monetary union of the euro, and as a result, the fee for bank savings collapsed. Official interest rate lowered 0% in March 2016. Also, in June 2014, the ECB charging banks to hold their money (known as deposit facility that reaches -0.5%), rather than paying them for it.

As a result, the average return on new family deposits below 0.1% Since October 2017 (0.07% last June compared to 0.04% in January), therefore, the average rate of deposits to households has been below this level since February 2020. deposit more than five years.

new hikes

However, tightening monetary policy will reverse this situation. this ECB raises interest rates by 0.5 points At the end of July, the first increase in the price of money 11 yearsthe biggest two decades and doubled his expectation. In addition, one of the most influential members of the board of directors, the German Isabella Schnabelthis Thursday the monetary authority Similar increase in September It was stated that additional increases will be made up to an uncertain level in the following meetings, as the inflation outlook continues unabated.

The first result is that banks it no longer costs them money to leave the money in the ECBTherefore, in anticipation of this move, they stopped charging their business customers. predictable in September central bank began to pay sector, organizations to hold their money, which in turn will begin to pay depositors.