Although for most traditional banks, time deposits are a residual product, there are still entities that offer this savings formula through the Internet with interesting advantages.
For several years now, banks have been offering time deposits through the internet. However, these savings products have become a residual product for the majority of lifelong entities that either do not sell them or keep them in their catalogs with an interest of 0% APR or similar, they explain from the financial comparator HelpMyCash.com.
Fortunately, there is life beyond traditional banking. Those interested in saving savings without paying commissions and getting the best return can still access interest of up to 1.36% APR if they resort to 100% online deposits. What are the advantages of these products?
1. More variety and more profitability
According to data from November 2020 provided by the Banco de Espaà ± a, the type of average interest for time deposits is 0.09% in our country. Fortunately, on the internet it is possible to find several banks that sell fixed terms with higher interest rates than the Spanish average.
Thousands of consumers have already opted for contracting online savings products through the German Raisin platform. It is a catalog that connects clients seeking high returns for their savings with banks that offer accounts and deposits with better interest rates. By registering, you can access more than 70 savings products from 18 partner banks across Europe.
As explained from HelpMyCash.com, the most popular deposits on the platform are the two-year deposit from J&T Banka with an interest of 1.19% APR, which requires a minimum investment of 10,000 euros and account with the protection of the Czech Deposit Guarantee Fund (FGD); the two-year deposit from Banca Progretto at 1.11% APR, a fixed term guaranteed by the FGD of Italy and which has the same minimum amount as the previous one and the three-year deposit from Privatbanka, with an APR of 1.14% and a required minimum of 5,000 euros. Funds deposited in this latest fixed term are covered by the Slovak FGD.
2. Same security and guarantee
A bank deposit contracted from a website or app has the same guarantees as if it is contracted from a branch. The funds invested in the fixed-term deposit are guaranteed, firstly, by the bank, which undertakes to guard them and remunerate them at the interest rate set at the beginning of the contract and, secondly, in Spain And the rest of the EU countries have protection from the Deposit guarantee fund of the country in which the entity is located.
All banks in the EU are backed by a FGD, an institution that guarantees the capital of depositors up to 100,000 euros per holder and bank.
3. More comfort and speed
Hiring and managing a warehouse from the sofa at home is a lot more comfortable than going to a branch in person, waiting to be attended and, furthermore, dodging the investment product offers that office salespeople usually try to place.
In most cases, a deposit can be arranged in a matter of minutes. It is only necessary follow the instructions and fill in the form with personal data, provide a photo of the identity document or make a video call, wait for the bank to activate the product and, finally, deposit the money through a transfer.
In the specific case of Raisin, to start investing through the platform it is mandatory sign up for the Raisin Account first, for which it is only necessary to have at hand the DNI or passport, internet connection, a telephone or computer with webcam for identification by video call and five minutes. To prove the place of residence, the platform also requests that the holder deliver a utility bill, a bank statement or the certificate of tax residence issued by the Tax Agency.
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