I was chatting with friends recently and realized many people are still leaving their money in regular accounts with almost zero interest, which is a huge waste! With the European Central Bank raising rates so many times, our deposit interests should be rising too. I’ve spent some time researching the deposit products from several mainstream and emerging banks and compiled this guide to show you how to put your euros to work and what to do in case of a frozen bank account!
High-Yield Savings Accounts
The great thing about savings accounts is their flexibility—you can deposit and withdraw funds anytime, and the interest is much higher than a standard account. They’re perfect for an emergency fund or for money you might need in the short term, all while being protected by the Spanish deposit insurance. The market is highly competitive right now, and several banks are offering some very attractive rates.
- Sabadell Online Account: Sabadell’s online account is currently offering a very aggressive rate for new customers, with a high promotional interest for the first few months. However, be sure to read the terms carefully, as there are usually maximum deposit limits and time restrictions. The rate drops after the promotional period ends.
- EVO Banco Smart Account: EVO has always focused on being fee-free with a modern, tech-savvy approach. Their Smart Account offers a competitive interest rate for savings and is hassle-free with no complicated conditions.
- Bankinter Payroll Account: If you have a regular salary, Bankinter’s Payroll Account is definitely worth considering. It offers a very high interest rate for the first two years, arguably the most generous among traditional major banks. The downside is that it requires you to deposit your salary and has a cap on the amount that earns the high interest.
Emerging Options and Comparison
In addition to traditional banks, some new digital banks and investment platforms are also offering high-yield savings options with greater flexibility and more attractive rates, though you should be aware of their [deposit limits]. For example, Trade Republic, though a German platform, operates very effectively in Spain. It offers a substantial interest rate on uninvested cash, paid out monthly, so you can actually see your earnings accumulate. The only drawback is that it’s an app-only platform, which might be a slight hurdle for those not used to mobile banking.
Here’s a simple comparison table to make things clearer:
| Bank/Platform | Account Type | Pros | Things to Note |
|---|
| Sabadell | Online Savings | High promo rate for new customers | Short promo period, has a cap |
| EVO Banco | Smart Account | Stable long-term, no requirements | Rate is slightly lower than promotional ones |
| Bankinter | Payroll Account | Extremely high rate | Requires salary deposit |
| Trade Republic | Cash Account | High rate, paid monthly | Purely app-based operation |
Fixed-Term Deposits
If you have a lump sum of money that you’re sure you won’t need for a specific period, a fixed-term deposit is an excellent way to lock in a high return. Currently, one-year fixed-term deposit rates are generally above 3%, with some smaller banks or Spanish branches of foreign banks offering close to 4%, which is very appealing. The drawback is that your money is locked in; withdrawing it early can result in losing interest or even part of the principal, so it’s crucial to only use funds you won’t need.
Stop letting your money lose value in a zero-interest account! Take a little time to do some research, open a high-yield account, or set up a short-term deposit. Wouldn’t that extra coffee money each month be nice? If you have any other good bank recommendations, feel free to share them in the comments below!
