I’ve recently saved up a bit of money, and I used to just let it sit in my CaixaBank current account, where the interest was basically negligible. The other day, a friend mentioned during dinner that with the European Central Bank raising rates, bank deposit interests have also gone up significantly, and advised me not to let my money just ‘sleep’. So, I took some time to research the deposit interest rates at major Spanish banks, and I was pleasantly surprised by what I found! I’m sharing my findings here for anyone who might find it useful.
Current Accounts
The main advantage of a current account is its flexibility; you can withdraw money whenever you need, making it perfect for an emergency fund. In the past, most traditional banks offered virtually zero interest on these accounts, but that’s changing. Some banks are now introducing high-interest current accounts to attract new customers, though they usually come with conditions, such as a maximum interest-bearing balance or promotional rates for a limited time.
For example, Banco Sabadell's online account offers a very competitive rate for new customers in the first year, but it has a deposit cap. Bankinter's Cuenta Nómina also has an attractive rate but requires you to have your salary paid into it. Digital banks like N26 and Revolut also offer decent interest rates on their paid accounts, a welcome change from the era of negative interest rates, and they are easy to manage. Generally, if you want to earn high interest on a current account, you either need to be a new customer or be willing to meet certain requirements.
Fixed-Term Deposits
If you have a sum of money that you know you won’t need for a specific period, a fixed-term deposit is a safe and reliable option. One-year fixed-term deposit rates have generally risen, with many banks offering annual rates of 3% or even higher. This is a much better deal than letting it sit in a current account! The downside, of course, is the loss of liquidity. Withdrawing your money early could result in a loss of interest or even a penalty.
I’ve compiled a simple table to give a general idea of Spanish deposit interest rates, comparing a few banks:
| Bank | Account Type | Reference APY | Notes |
|---|
| Sabadell | Cuenta Online | 2.5% | Current, with a limit |
| Openbank | Depósito a 6 meses | ~ 3.05% | Fixed-term, frequent promotions |
| Pibank | Depósito a 12 meses | ~ 3.30% | Fixed-term, no amount limit |
| EBN Banco | Depósitos a plazo | ~ 3.40% | Fixed-term, multiple terms available |
To sum up, now is definitely the best time in many years to earn interest on savings in Spanish banks. If you also have some spare cash, it’s really worth spending some time researching Spanish bank interest rates; don’t let your money lose value in a zero-interest account. I’m planning to move most of my savings into a one-year fixed-term deposit and keep a small portion in the Sabadell current account to take advantage of the new customer offer. If you have any better recommendations or experiences, feel free to share them in the discussion below!
