Financial institutions, which have received almost no response for savings kept in the bank for years, are increasing the fees they pay for fixed-term deposits starting from the beginning of the year, following the interest rate increases of the European Central Bank. One of the first movers was Abanca, which this week began a customer acquisition campaign for two deposits offering returns between 2.45% and 2.80%. This is true This type of investment products reach 3% in the market, but these come from European organizations or some organizations that are not well known to the public. Among the major Spanish banks, the two newly opened by the Galician institution are the best performers.
There are also Treasury Bills that have been in high demand in recent months due to the high profitability they provide. But sometimes it’s hard to get them, and their prices are already falling. For example, yesterday the State Treasury put 1 billion 997 million dollars into the short-term debt auction. Demand reached double the amount given, with 4.574 million requested. Regarding the interest rate cut, the Treasury invested 502 million lira in 3-month bills. 3.538% offeredThat’s below the previous 3,620%, which was the highest percentage in 12 years. While 1 billion 495 million liras were tendered in the 9-month bond auction by the institution affiliated to the Ministry of Economy, the marginal interest was 3.492 percent, below the previous 3.510 percent.
Meanwhile, Abanca offices this week launched the marketing period of two term deposits, which will last until February 23, or if the 100 million investment in 12-month and 50-month term deposits is reached earlier. stale. Both will be active starting February 28.
The first of these is structured deposit with a 12-month guarantee. As the name suggests, it lasts for a year and 100% of invested capital is insured. The charge will depend on the behavior of Mercedes-Benz shares between February 28 of this year and February 26, 2025. The coupon will be paid after 2 maturity if the value is equal to or greater than the initial value. 0.80% and 2.45% if lower. An example. For an investment of 10,000 euros, the client will demand 280 euros in the first case and 245 euros in the second. From these figures we need to subtract the 19% retention margin, so the net income will be 227 and 199 euros respectively.
The second product newly introduced to the market is structured deposit with 18 months guarantee. In this case, the period is one and a half years and the investment is protected. The interest received will depend on the development of Pfizer shares on the New York Stock Exchange between February 28 of this year and August 26, 2025. If this date arrives, the final value will be equal to or greater than the initial 2.71%. The deposited amount will be paid. If lower, 2.52%. That is, for an investment of 10,000 euros, the customer will pocket 271 euros in the first case and 252 euros in the second case. If withholding tax is removed, a net of 220 and 205 euros will be received, respectively.
No advance cancellation
Unlike what usually happens with other deposits, these two deposits from Abanca cannot be canceled in advance, so you have to wait until February 28 next year in the case of a 12-month deposit, and until August 28 in the case of a 12-month deposit. recovery of investment in addition to interest.
The Galician organization explains that both products are aimed at “retail customers of all risk profiles.” “They do not foresee the need to receive money before the expiration date of the product”, but that they were willing to assume the risk of obtaining an “uncertain return” in exchange for obtaining a “higher return” “without assuming any loss on the capital invested.” Both are covered by the Deposit Guarantee Fund, which provides coverage of up to 100,000 euros.
All Spanish banking investment products have a risk indicator ranging from 1 to 7. 1 is the lowest and 7 is the highest. The risk of the two time deposits newly launched by Abanca is 1. In both cases, the minimum amount that can be deposited is 3,000 euros.