Chatting with friends recently, I’ve noticed everyone’s talking about bank interest rates. The European Central Bank has raised rates several times, and fixed-term deposit rates, which were once almost zero, are finally starting to look attractive. With some spare cash on hand, rather than letting it get eaten away by inflation in a current account, it makes sense to find a reliable bank for a fixed-term deposit to earn some interest. After the era of negative interest, I’ve spent some time researching and have compiled the latest information for your reference. Feel free to add your own findings or corrections!
Interest Rate Landscape at Major Banks
To be honest, Spain’s major banks, such as CaixaBank, Santander, and BBVA, are still a bit ‘stingy’ when it comes to deposit interest rates. Perhaps because they are large and don’t struggle for customers, their publicly listed rates are generally not very high. Often, you need to proactively visit a branch and ‘have a chat’ with your account manager to get a more decent offer. Typically, new customers or those depositing new funds will get better rates, while existing funds of long-term clients might not receive the same treatment.
Smaller and Online Banks are the ‘Hidden Gems’
In contrast, some smaller or purely online banks are much more generous. To attract customers, they often offer more competitive fixed-term deposit rates. Banks like Openbank, ING, and EVO Banco, for instance, frequently launch high-interest promotions. Additionally, some foreign banks, like Italy’s Banca Sistema or Portugal’s Banco BAI Europa, offer rates through the Raisin platform that can sometimes reach 3.5% or even higher, with a wide variety of terms ranging from 3 months to several years.
Interest Rate Comparison
Here’s a simple table I’ve put together on Spanish deposit interest. The data on Spanish bank interest is based on recent observations. Please note that specific rates change constantly, so always double-check the official websites before making any decisions! This table is just meant to give you a general idea.
| Bank/Platform | Deposit Term | Reference APY |
|---|
| Openbank | 6 Months | ~ 3.05% |
| Banca Progetto | 12 Months | ~ 3.60% |
| MyInvestor | 3 Months | ~ 3.00% |
| Pibank | 12 Months | ~ 2.97% |
| BBVA | 12 Months | Negotiable, usually under 2.5% |
How to Choose?
When choosing a bank for your savings, besides the interest rate, there are a few other points to consider:
- Fund Security: Make sure to choose a bank protected by the Spanish or EU Deposit Guarantee Fund, which typically insures up to €100,000 per depositor, per bank.
- Liquidity: Think about how long you can go without needing this money. Longer deposit terms might offer higher rates, but early withdrawals usually come with a penalty,
and you could even lose all the accrued interest.
- Minimum Deposit: Different banks have different minimum deposit requirements, ranging from €1 to tens of thousands of euros.
It’s certainly one of the most opportune times in the last decade to open a fixed-term deposit. If you’ve also done some research, feel free to share the offer you received in the comments below to help others out!
