They say that the past always comes back, and in the economic field, too. As we know, the economy is cyclical, and a good streak is followed by a bad one. And so it has been for ever and ever.
We are now experiencing a new stage of recession that is motivated by the war situation in Ukraine and high inflation that travels the world. Interest rate hikes are already a fact in the United States, and in Europe they may be falling.
Some measures that we have not seen since the bubble and that they have brought with them echoes of those times. Do you remember the Bank deposits? Those that practically everyone left aside when interest rates became negative and hardly gave a return.
well they’re back. At least in Deutsche Bankthe first entity to go out into the ring paying for deposits of 12, 18 and 24 months up to 0.60%. Precisely when volatility is at its maximum in the financial markets, this bank has once again put on the table one of the conservative assets par excellence.
But, is it going to remain an anecdote or will the rest of the banks follow suit?
Big banks don’t believe in deposits
This decision by Deutsche Bank is, for the moment, unique. Because the rest of the main financial entities have not yet been encouraged to return to this market, taking into account that customers have already left it in the drawer of oblivion attracted by cryptocurrencies and others.
But now that everything is going wrong, it is possible that they will return to the refuge of the deposits. Be that as it may, for now they will not find much offer.
For example, him Banco Santander does not even announce deposits already on your website, because you are not willing to pay for something that is barely received. But BBVA does offer a return similar to Deutsche in a product. But it has a trick.
It is the combined deposit. That is, a fixed-term deposit combined with an investment fund, hence it is thrown up to 0.65% return from 600 euros and a minimum duration of 13 months. In addition, you can choose what proportion of the investment goes to the deposit and the fund, and obviously it gives more returns if you put more weight in the fund.
In CaixaBankOn the contrary, we do not find anything like that. It has a savings insurance, which could be likened to a deposit, but it barely gives 0.06% the first year, the second it goes down.
ING is even more concise and only gives 0.01% with its famous orange bead. For its part, Bankinter yes it stretches something more giving a 0.20% APR on your deposit in dollars.
Therefore, we see that the step taken by Deutsche Bank for the moment is unanimous, but it does serve as a warning to sailors: fixed income may be the only safe place in the midst of the fire that crosses the markets and the global economy. Of course, forget about big profits, settle for not losing.