May 22th 2024 | 3:58


Banco Finantia and Banca March increase deposits to 3%

Jesus Carames

April 18, 2024 | 4:24 p.m.

In a movement against market trends, Banco Finantia and Banca March have decided to increase the profitability of their fixed-term deposits above 3%, in a context where the majority anticipates a decrease due to the upcoming cuts in interest rates. interest from central banks. This increase is not only significant in the Spanish panorama, but also reflects a strategic change that could affect the behavior of savers and the dynamics of the short-term deposits market.

The profitability of deposits in Spain has shown a downward trend in recent months, in anticipation of the interest rate cuts that central banks could begin to apply as soon as June of this year. However, in an unexpected turn, Banco Finantia and Banca March have raised the interest rates of their deposit products, placing them above the 3% threshold within one year, in a clear challenge to the predominant trends.

Banco Finantia takes the lead

Banco Finantia has adjusted upwards its offers on fixed-term deposits, establishing a new standard with a profitability of 3,25% for clients who choose not to cancel early, and 3,15% for those who wish to keep that option open . These rates apply to deposits with a minimum amount of 50,000 euros and represent the highest rates currently available for one-year terms in Spain. This adjustment not only places Banco Finantia at the top in terms of deposit offers, but also displaces Banco Cetelem to second place, which until now offered a one-year fixed term at 3,2%.

Banca March adjusts its strategy

On the other hand, Banca March has increased its interest rate on one-year deposits from 3% to 3,10%. In addition to offering one of the most competitive returns on the market, this entity allows early cancellation of the deposit at any time, offering an interest rate of 1,51% APR if the money is withdrawn before the agreed term. This approach provides considerable flexibility for investors, adapting to the needs of those seeking both performance and accessibility to their funds.

Future outlook for fixed deposits

Despite the expectation of a decrease in the profitability of deposits due to the possible moderation of interest rates, the Bank of Spain suggests that there could still be room for an increase in the cost of bank deposits. According to its latest Financial Stability report, interest rates are anticipated to remain above the average deposit rate through 2024. Additionally, the trend of moving funds from demand deposits to time deposits and other investments is likely to continue. such as investment funds and public debt, seeking better returns.

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