Published data from ABI they give a precise picture of the banking situation of Italians. The liquidity on accounts and deposits reached 1,672.86 billion. Be careful to keep money on current accounts. Unfortunately, savings immobilized in non-interest bearing instruments lose value over time.
Let’s take an example to better understand
Let us now take as a reference the average of the consumer price index of the last 20 years set at 1.7%. 5 thousand euros deposited in 2000 in a current account of any banking institution, today it would be worth 3,569 euros. We are talking, over a period of time, taken as a reference of about 30% less. Having the money in a checking account has fixed costs to be paid to the banks. An average family, today, spends 146 euros a year to keep a current account open. In 2010, the same family spent 94 euros.
On balance, the economic damage increases because adding these costs, the stock decreases even more. But that’s not all because the loss of earnings must also be calculated.
In fact, not having invested the fixed sum in the current account generated a loss of profit. Over the past 20 years, stocks and bonds have offered real returns. Logically, it is net of inflation, respectively on an annual basis of 5.20% and 2%.
Liquidity increased
The coronavirus has heightened the fear of spending. The Italians have seen fit to keep the money due to the uncertainty of the historical context. In February, liquidity in the bank increased by 21 billion. Finally, with the lockdown, the increase was more than double. Then in June, with the resumption of activities, the balance of bank deposits fell.
In the summer, as a result, families poured another 37.16 billion into their accounts. In all of this, the banks are the only ones smiling. In seven months the credit institutions found themselves with a liquidity greater than 109.69 billion. The balance is 1,672.86 billion. Those who have left their savings in the current account have lost a large chunk of returns offered by the markets. So, be careful to keep money on current accounts, your savings should not be abandoned.
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