Bank deposits have shown a cautious rebound in funding, with the weighted average rate for February arriving at 0.86 percent. Data from the Bank of Spain indicates an improvement from the previous month, where the rate stood at 0.59 percent, marking a shift away from January’s trend when both Spanish and Cypriot banks trimmed savings fees.
Recently, deposit offers from smaller institutions have started to surface in an effort to attract new customers. Caixa d’Enginyers, ING, and Mediolanum have joined this wave. However, the larger banks continue to maintain a conservative stance, not offering high-yield accounts despite the overall rate environment lifting the Euribor used for variable-rate mortgages toward a one-year horizon. By late March, the average rate remained a point higher, closing around 3.647 percent for mortgage benchmarks.
With liquidity pressure easing for the big lenders, which had benefited from ECB liquidity and maintained stable fee structures through mutual funds or insurance products, smaller banks began to compete more aggressively. Pibank presents an annual percentage yield of 2.52 percent with no restrictions for twelve months and quarterly interest payments. Evo Bank, meanwhile, offers 1.50 percent up to 30,000 euros if payroll is domiciled. EN increased the orange account fee to 1 percent for payroll customers, reinforcing a trend of fee adjustments amid shifting competitive dynamics.
up to ECB
Openbank has announced that if balances or monthly income increase by 600 euros, its fee setup rises to 2.75 percent for the next twelve months, effective until May 12. Bank Mart advertises 2.30 percent per year on contributions between 10,000 and 500,000 euros. Mediolanum Bank is offering 4 percent for six months to new clients who maintain managed assets of at least 3,000 euros, with contributions between 2,000 and 50,000 euros, or with payroll direct debits. Caixa d’Enginyers presents time deposits at 1.75 percent, 1.80 percent, and 1.85 percent for 12, 18, and 24 months respectively, with contribution windows of 5,000 to 50,000 euros.
Return on deposits, according to data from the Bank of Spain, rose to 0.71 percent from 0.37 percent in January for investments of up to one year. Rates for deposits maturing in one to two years edged from 1.24 percent to 1.29 percent, and deposits longer than two years rose from 0.78 percent to 1.03 percent. The upward trajectory suggests continued pressure on rates. In remarks that resonated across the euro area, Christine Lagarde, president of the European Central Bank, encouraged customers to push for higher returns on their accounts and deposits.
Bank customers are urged to have candid conversations with their bankers about savings options. Bankers should respond with straightforward products and fair terms if they want to retain clients. The broader context shows a climate where many households and businesses may switch banks more readily, as seen in several nations where account changes have become simpler. The ECB signals a preference for higher deposit yields to help push inflation toward the target, pursuing two avenues: make credit more costly to curb demand, and simultaneously raise the appeal of saving to restrain excess spending or risky investments.