The decline in inflation means that bank deposits almost allow you to protect your capital against loss of value. However, there is still a long way to go before they are profitable. In December, with the November inflation estimated by the Central Statistical Office at 6.5%, banks still offer interest rates on half-year deposits at the level of 6.7%, and one even 7.1%. However, taking into account the tax, Belki still generates a loss.
Moreover, the interest rate of 6.5-6.7% per annum is offered for a maximum of six months.
In December, banks further reduced deposit interest rates – on average below 5%.
The December offer of bank deposits includes only one, which can be opened for 12 months with an interest rate of 6.5%. Other similar ones, with an annual interest rate of 6.5% and a maximum of 6.75%, can be opened for a maximum of three-six months.
Despite this, analysts believe that by making an annual deposit, you will finally be able to count not only on capital protection, but also on a small profit. Especially if there is also a tax relief for Belka. According to unofficial announcements, it will involve exemption from capital gains tax on investments up to PLN 100,000. PLN per year.
– The Monetary Policy Council did not decide to reduce interest rates in December. This is not a surprise because the market expected such a decision. After the cuts that took place in September and October this year, the main interest rate is still 5.75%. Nevertheless, interest rates on bank deposits continue to fall. According to the latest data from the National Bank of Poland, the average interest rate on deposits opened in October was 4.6%. In September it was 5%. We expect this trend to continue in the coming months, says Konrad Pluciński, financial products expert at rankomat.pl.
In September, the average interest rate on new deposits was 5%, and in December 2022 – 6.3%.
Deposit interest rates are falling from September 2023
Two interest rate cuts have brought the average interest rate on bank deposits to less than 5%. Still, it’s a good time to make deposits of at least one year. In the long run, they can bring more profit than several shorter deposits, experts believe.
The analysis conducted by Rankomat.pl experts shows that until September 2023, for twelve months, the main interest rate was at a record high level and amounted to 6.75%. Additionally, the inflation rate was breaking records. This directly translated into the interest rates on bank deposits, which often offered 8% per annum. On promotional offers, after meeting additional conditions, customers could get up to 10%. Currently, they can no longer count on such high interest rates.
The interest rate on deposits has been systematically decreasing since the end of the second quarter, which is confirmed by data published by the National Bank of Poland. In October, the average interest rate on new deposits was only 4.4% for monthly deposits, 4.5% for quarterly deposits and 5.1% for six-month deposits.
In the case of annual deposits, the average interest rate was 5%. For comparison, in September monthly deposits offered an average interest rate of 4.7%, semi-annual deposits – 5.4%, and annual deposits – 4.7%.
– In just one month, banks have significantly reduced interest rates on deposits. The largest drop, by as much as 80 basis points, concerns the longest deposits for a period longer than one year, emphasizes Konrad Pluciński.
In December, the real return on deposits was still negative
Deposits and savings accounts are a good way to secure your savings. However, for a long time deposits have not offered full protection against inflation. The worst situation occurred a year ago, when they gave a loss of over 10% (taking into account the so-called Belka tax) compared to inflation. In the case of the average deposit interest rate in October, which was 4.6%, the real loss is -2.4%. This is a significantly better result than in September, when we lost 3.5% on the average deposit. This is also the best result since the beginning of 2021, when inflation was 2.6% and the deposit interest rate was around 0.4%.
However, for a 12-month deposit with an above-average interest rate of 7% per annum, real profits will be slightly negative compared to the current inflation. The loss on such an investment will realistically amount to approximately -0.9%. However, it should be remembered that in a year the inflation rate may be lower, which may mean real profits on such a deposit. In the opinion of the rankomat.pl expert, this is a good time to become interested in longer bank deposits.
– We expect a decline in inflation and further reductions in interest rates. It is therefore very likely that after the current, shorter deposit ends, we may not find another one with an equally high interest rate. Therefore, although in the case of bank deposits the highest interest rates are short-term deposits – three or six months – it is worth analyzing your financial situation and considering a long-term deposit for a minimum period of one year. Despite a slightly lower starting interest rate, it can bring us higher profits than shorter deposits that we will open every few months. If the interest rate on a new deposit is lower each time, our total profits – even taking into account more frequent capitalization – may be lower – suggests Konrad Pluciński.
The best offers of deposits and savings accounts in December
Among the bank offers available in December, the deposit with the highest interest rate is currently Nest Lokata Witaj for six months with an interest rate of 7.1% per annum. We will open the deposit together with a free bank account. If we deposit the maximum amount on the deposit, i.e. PLN 25,000. PLN, then after its completion we will receive interest in the amount of approximately PLN 720 (after deducting Belka’s tax).
The banks’ offer includes deposits with an interest rate of 7%, but mainly for new customers and with deposits of PLN 20,000-25,000. zloty. Moreover, this interest rate is guaranteed for the first two or at most three months.
However, with half-year contracts, the best deposits on offer are subject to an interest rate of 6.7-6.75%.
The only deposit that, with a comparable interest rate, can be opened for a year and starting from an amount of PLN 1,000. PLN is Lokata 5 Plus in Volkswagen Bank. However, here too, the condition is to have an account in this bank.
2023-12-11 07:25:40
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