Households withdraw 21,500 million in deposits in the year

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21,500 million euros less in three months. This is how much the bank balances of Spanish households fell in the first quarter. A stampede that has slowed down over the last two months, but is still going on. In January, households collected 13,100 million euros from their deposits with banks, the following month there were 5,000 million and in March the outflow was 3,400 million compared to February, according to data published by the Bank of Spain on Thursday. Households had more than a trillion euros in deposits at the end of last year. The reasons for withdrawing the money are diverse, some related to the need to save to cope with rising spending due to inflation and others because they are looking for destinations that better reward saving. The banks, which are now presenting their quarterly figures, are assuring that they will not wage a war over deposit fees despite the rise in interest rates. Mortgages have become significantly more expensive, but household savings are not rewarded at a comparable level. Banks are not encouraged to open a war over liabilities because they have ample liquidity due to the ultra-expansive monetary policies of recent years; In addition, if the deposits start to reimburse with high rates, they would lose part of the interest margin, and for now the company’s profitability in Spain still does not cover the cost of capital. For this reason, they prefer to redirect their savings into other types of products that generate more commissions, such as mutual funds, even though they carry more risk for the saver. Behind Germany and France The yields offered by the major Spanish banks on deposits are at the bottom of Europe. According to data from the European Central Bank, the profitability of deposits in Spain with maturities of 1 to 3 years averaged 0.7% in February, compared to 1.95% in Germany or 2.58% in France. Still, there are some deals for the saver looking now. For example, Openbank has been offering the Welcome Deposit in recent weeks with a return of 1.75% APR and a term of twelve months, which increases to 2.75% if an account is linked to monthly income. ING has increased the profitability of its orange account to 1%. Bankinter pays up to 5% APR for the first year, but only the first 5,000 euros. There are other paid deposits with a paid balance limit, but in principle the big banks, which accumulate more than half of the savings, have the right not to make aggressive offers to attract deposits, because when the official interest rates were negative, the entities did not. charge their customers. Apple has entered the liability war last, offering a savings account with a return of 4.15% per annum, but it can only be closed in the United States for now. Total deposits (including corporates, public administrations, collective investment schemes, insurance and pension funds) fell by EUR 41,000 million in the first three months of the year to EUR 1.645 trillion, but continued the upward trend in March with EUR 13,000 million more in deposits compared to February.
Source: La Verdad

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