ECB Rate Hike Sparks Deposit Market Revival

The European Central Bank's (ECB) decision to raise its deposit facility rate has sparked changes in the deposit market, leading to improved returns for savers. As of September 16, the ECB's deposit facility will stand at 2.5%, prompting banks to adjust their offers.

Certain entities have begun offering deposits exceeding 3% Annual Percentage Rate (APR), with Ferratum offering 3.4% for twelve months and Deutsche Bank reaching 3.25% under specific conditions. Mediolanum also offers 3% linked to investment requirements, while others occasionally offer up to 3.5%, although terms and conditions may vary.

The average APR for Spanish term deposits was 2.01% in July, but the newly introduced rates are significantly higher. A deposit of €10,000 yielding 3.4% for one year would generate approximately €340 gross, with about €275 remaining after a 19% withholding tax.

However, even at these high rates, the real profitability remains negative due to inflation, which has accelerated again. Savers will not lose money in their accounts but may not be compensated for the loss of purchasing power caused by inflation.