Banks take the most conservative savers to investment funds – Rosamond Vincy
It has been more than 3 years since the Bank of Spain imposed significant limitations on the profitability of bank deposits in our country.
This process together with the measure taken, at the end of March, by the European Central Bank to lower interest rates to 0% have marked the collapse of interest rates on fixed terms and has triggered the total assets under management in the funds above 225,000 million euros, one of the highest figures since March 2008.
Banks divert Spaniards’ savings to guaranteed funds
With few exceptions, the offer of fixed terms that banks have barely exceeds 0.20%, so they have come to offer their customers other alternatives, focusing almost always on investment funds.
According to the financial product comparator Good Finance the figures cannot be more convincing. The latest data from the Bank of Spain indicates that the total volume of deposits in July 2016 stood at 289,972 million euros. The figure is not only 6,500 million euros lower than that of the previous month, but it is also assuming a decline in values for the month of June 2007, just before the start of the economic crisis. As for the total volume of investment funds in August, investments exceeded 1,996,978 euros compared to the previous month, indicating that the growth of these is quite exponential.
Due to current rates
Deposits are not the most attractive product in which to leave savings, so customers have started looking for alternatives . Hence, entities are fully achieving their objectives, bringing their most conservative clients to the universe of investment funds, which guarantee them juicy and safe commissions.
In Spain, the guaranteed funds industry has a large number of registered funds. And as savers, encouraged by high returns and without paying special attention to the risk that we can assume if we invest in one, since neither the investment nor the interest to be received are guaranteed which could lead us to lose everything, we incur one of The main failures that can be committed as investors, forget our own ability to take risks, something that at no time should we miss.
Alternatives to investment funds?
Currently, in the market we find alternatives to investment funds in deposits such as WiZink , heir of bancopopular-e, which offers a 0.90% APR, with a period of 14 months for investments from 12,000 euros. In addition, this deposit is associated with the WiZink savings account with which we can achieve a return of 0.75% APR with no time limit.
The Facto Deposit of Banking Farmafactoring with a remuneration of up to 1.50% APR and a term of up to 5 years for investments of more than 10,000 euros and the one-year Deposit.
Deposits that, without the need to assume any risk, will allow us to profit from savings with interest well above what most Spanish entities offer.