Deposit yields continue to decline in Spain
Published 5 months ago · Finance
Reading time: 35s · Source 270s · · eleconomista.es
Sentiment: · · ·businesses: Banco Pichincha · Banco Finantia · WiZink
- The average yield on 12-month deposits in Spain is currently 2.20%, down nearly one percentage point from a year ago.
- The decline in yields has been gradual since June, following interest rate cuts by the European Central Bank (ECB).
- The market anticipates further rate cuts, which will likely lead to continued decreases in deposit yields.
- Several 12-month deposits are still available that exceed the expected inflation rate of 2.1% in the Eurozone for 2025.
- Banco Finantia offers the highest yield at 2.95%, requiring a minimum deposit of €50,000.
- Digital bank WiZink offers a yield of 2.60% for deposits starting at €5,000, while Ecuador's Banco Pichincha offers 2.52% from €1.
- Investors are advised to consider money market funds as a better alternative to deposits due to their short-term nature and tax advantages.
- As interest rates continue to fall, savers may need to evaluate their risk tolerance and consider investing in bonds for potentially higher returns.
Find out the mood, impact, relevance and relevant interest groups
Analyses of the article
SENTIMENT
The article highlights challenges faced by savers due to decreasing yields and suggests that investors may need to reconsider their strategies, indicating a negative sentiment.
IMPACT
Short
The decline in deposit yields and anticipated further rate cuts will have noticeable impacts on savers and investors in the short term.
RELEVANCE
Moderate
The information is moderately important as it primarily affects savers and investors in Spain and Ecuador, rather than a broad audience.
STAKEHOLDER
public
The article discusses the impact on the public, particularly savers and investors, who are directly affected by changes in deposit yields and interest rates.