houses they keep going decrease the money they have deposited inside banks at a pace incomparableto allocate both other products more profitable investments and savings alleviate coup high inflation. There were families 963.040 million Euro amount in current accounts and time deposits in financial institutions at the closing August11.965 million and one 1.2% less than a year ago and 3.199 million and one 0.33% less Compared to July, as published by the Bank of Spain this Tuesday. The most important thing is that since then all-time high 984,887 millions accumulated in the past Decemberthey have already withdrawn 21.847 million2.2% of the total and highest amount In the first eight months of the year since the supervisory body started measuring 2003.
However, the overall decrease hides a fact. minor recomposition Money deposited by citizens in banks. funds inside existing accounts we went down 52.493 million By the end of 2022, it reached 867,621 million with an increase of 5.7%. Instead of, term deposits It increased 30.617 million and 47% to 95.617 million. So slow and gradual interest rate increase organizations to pay for these deposits are gradually attracting customers, but not enough to offset the sharp decline in the money they had saved in their checking accounts.
Banks therefore agreed to make an average payment. 2.33% on new deposits The forward rate subscribed to by households in July (the latest available data) is slightly above 2.21% in June but 0% in July last year (when the European Central Bank started to raise official interest rates to combat inflation). Well above .15 and lastly it was 0.67%. Fireplace. Of course, Spanish banks continue to offer below-average fees for these savings products. euro area (2.83%) and how much does he pay companies (3.11%). Moreover, 90% of the money Current accounts held by families in businesses average fee 0.12%In 2014 (the year the ECB turned interest rates negative to restart the economy) it was more or less evenly distributed between accounts and term deposits.
treasury letters
bank resistance Increasing the return on deposits contributed to increasing families’ commitment to Treasury bills. As a result of the ECB’s rate hikes, interest on these short-term debt securities has increased since then. negative levels At the beginning of 2022 (The state returned less than it received) Pay between 3.49% and 3.73% in recent auctions. As a result, families 18.523 million Euro banknotes at the end of July, highest number since the statistics began in 2002. first Spanish landowner Treasury bill data was in front of banks for the first time since the data became available.
Likewise, citizens increased their savings. other financial products. In the first quarter, households made net subscriptions (gross contributions less withdrawals) in investment funds worth approximately 12 billion 564 million euros; This is the highest quarterly figure since Bank of Spain statistics began in 2015. insurance and funds pensions (increased by 2.334 million), but they reduced Movements (per 1.163 million) and other types of participation working capital (per 1.882 million).
Another factor that explains the decrease in the money citizens deposit in banks is the extraordinary increase in variable interest mortgage loan payments. Households that could afford this tried to alleviate this situation by paying back some of their loans in advance. reduce the fee. Thus, between January 2022 and March 2023, families early repayments (higher than those required in its regular payments) is equivalent to 9.2% of the existing variable mortgage balance and 6.4% of the fixed-rate mortgage portfolio at the end of 2021. And this trend has accelerated in recent months. Last year, households repaid approximately 54.7 billion euros between regular and advance payments, setting aside until July for this purpose. 69.457 million.