Having recently arrived in Spain, I’ve been using a Santander account I opened earlier, which is basically their Cuenta Online. As you might know, it offers zero interest and is purely for daily transactions. Lately, the news has been full of reports about the European Central Bank raising interest rates, and euro rates have gone up quite a bit. It got me thinking whether I could earn some interest on the spare cash I have, which is surely better than letting it devalue due to inflation, right? So, I spent some time researching the current interest rate situation at various Spanish banks and wanted to share my findings with you all. I also welcome any additions or corrections from the experts here!
Savings Accounts
First, let’s talk about the most flexible option: savings accounts. The main benefit is that you can withdraw your money anytime without a lock-in period. In the past, the interest on these accounts was practically negligible, but things have changed. To attract customers, many online banks or the digital arms of traditional banks are now offering savings products with decent interest rates. A typical example is Bankinter’s Cuenta Nómina; if you have your salary paid into it, you can get a very attractive annual interest rate on the first few thousand euros. ING’s Cuenta Naranja is another long-standing option. Although its rates aren’t as competitive as they were a few years ago, its strengths lie in stability and a good user experience.
Fixed-Term Deposits
If you have a sum of money that you’re sure you won’t need for a certain period, a fixed-term deposit is definitely a better choice for earning higher Spanish bank interest. The longer the term, the higher the interest rate usually is. I’ve been looking into a few options recently and found that some smaller banks or Spanish branches of foreign banks are offering particularly attractive rates. For example, some deposit products offered by Italian or Portuguese banks through the Raisin platform can have one-year interest rates reaching 3.5% or even higher. In contrast, Spain’s own major banks, like CaixaBank and BBVA, seem a bit stingy with the fixed-term rates they offer to regular customers. You might only be able to negotiate a better rate if you are a high-net-worth client or deposit a very large sum.
A Quick Comparison of Bank Rates
Please note that these rates are subject to change, so be sure to check the bank’s official website for the latest information before opening an account! The data here is just for general reference.
| Bank/Platform | Product Type | Reference APR | Notes |
|---|
| Trade Republic | Savings | Approx. 4% | On the first €50,000, German bank |
| Banca Progetto | Fixed-Term | Approx. 3.75% | 1-year term, Italian bank |
| MyInvestor | Savings | Approx. 2.5% | Spanish online bank, promotional rate for the first year |
| Sabadell | Savings | Approx. 2% | Usually has new customer offers and a deposit cap |
To get a good interest rate on your savings in Spain, the key is to “shop around”. Don’t just stick with your usual major bank; explore various online banks and platforms specializing in savings products. Although opening a new account might be a bit of a hassle, the extra interest earned over a year can easily be enough to buy something nice. So, which banks are you all using for your savings? Have you discovered any hidden perks or run into any pitfalls? Feel free to share and discuss in the comments below!
