Good news for savers: As part of an interest rate shift by the European Central Bank, interest rates on term deposits are on the rise again. To whom it makes sense and where consumers can get attractive offers.
Eleven years later, it was European Central Bank (European Central Bank) chose to change the interest rate. Having faced savers with low and negative interest rates in recent years, according to Bank President Christine Lagarde, the European Central Bank plans to raise the key rate by 0.25 percentage points in July 2022. As the ECB Governing Council explained in a press release at the beginning of June, an increase is expected another in September.
As part of these developments, interest rates on fixed deposits have also gone up, he explains financial adviceExpert Dirk Ellinghoff. as such to focus Connected You mentioned, Renault Bank, for example, recently raised interest rates on fixed deposits significantly.
Term Deposit Accounts: Fixed Interest Investments
According to the financial advisor, term deposit investments are particularly attractive to consumers who do not need certain amounts of money for a period of time. financial advice. He explains that there is also the potential to “reduce the risks of other investments with fixed deposits.” financial advice– Expert Hendrik Boerse. Buhrs sees the greatest advantage in the fixed and unchangeable interest rate as well as the expected repayment of the money invested. Although clients lose flexibility and do not have access to their funds during the term, they receive higher interest rates than overnight funds.
According to Fintech Raisin, with a period of 24 months, the most attractive providers are PayRay Bank and Fjord Bank from Lithuania, Italian Bank Banca Progetto and Klarna Bank from Sweden. While PayRay offers 1.75 percent annually, Fjord Bank and Banca Progetto each offer customers 1.65 percent. Klarna offers 1.6 percent annually and Renault Bank 1.2 percent.
In comparison, offers from German banks are far behind. With a period of 24 months, PeacBank is one of the leading German companies with a 0.9 percent share according to Raisin.
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High inflation reduces purchasing power
Although higher interest rates would mean eliminating negative interest for the time being and investing in term deposit accounts looks attractive at first glance, rising inflation dampens enthusiasm. Although savers get more attention, they lose out on purchasing power, according to Ellinghoff. Because the rise in interest rates on term deposits is currently only at a low level. Therefore, Bohrs recommends flexibility to fixed deposit clients. “As the interest rate shift is underway and interest rates are currently rising again, you can quickly take advantage of better short-term interest rate offers.”