What are the new interest rates on simple current accounts applied that could be a historic turning point among Italian banks? The interest rate is the amount of money you get out of your savings after certain periods of time. That is, it is the yield that every kind of investment yields and which it seems will also be applied to current accounts.
Interest rate on current accounts and what changes for Italian banks How interest rates change for deposit accounts
Interest rate on current accounts and what changes for Italian banks
The current account is a financial instrument aimed at managing money that allows you to make withdrawals and deposits, transfers to transfer money, credit your salary, domicile utilities and carry out various other operations.
The interest recognized on current accounts is contained, but something could change. From June 1, the Spanish BBVA began to apply interest rates on current accounts, predicting a 2% interest rate and this is a novelty that is valid both for existing bank customers and already holders of a current account and for new customers who decide to open a new current account.
The conditions will also apply to new customers and until 31 January 2025, i.e. for a year and a half. The institute has decided to remunerate its customers who pay their salary or deposit an amount equal to or greater than 800 euros with 2% of the balance of the BBVA Online Current Account, while customers who make purchases at least once a month with the Card of BBVA Debt will receive 1%. The interest that accrues on the current account is credited directly to the customer’s account.
The initiative of the Spanish BBVA follows what has already been done by the Italian Illimity, which was the first to recognize a 2.5% interest rate on demand depositsbut only for the Premium account which provides for the payment of a monthly fee of 7 euros, and by Banca d’Asti, which has provided for the recognition of interest rates for the holders of its current accounts but for a limited time and under specific conditions.
BBVA’s offer, on the other hand, is aimed at all current account holders regardless of the type of account opened, the cost of the fee or other binding conditions for which the hope is that all Italian banks will move towards the application of interest rates on all current accounts in order to guarantee all current account holders returns that could represent a real turning point.
How interest rates for deposit accounts change
Compared to normal current accounts, interest rates are always applied instead to deposit accounts, financial products aimed precisely at obtaining a return and which always have an interest rate higher than that recognized by the current account.
Depending on the bank you choose, today it is possible to have interest rates on deposit accounts from 0.50% to 4%which also change depending on whether you decide to invest in a restricted or non-restricted deposit account: the restricted account provides for the constraint of the sum of money to be invested for a specific period of time and generally offers a higher return on the deposited capital and if you decide to take the invested money before the fixed deadline, you will be charged a penalty.
With the non-restricted deposit account, on the other hand, it is possible to withdraw the money paid at any time without any penalty and in any case you have good returns even if slightly reduced compared to those fixed for the restricted accounts.
According to what is expected, in fact, returns increase if funds are tied up for a long period and if the invested capital is high. Investing in deposit accounts provides various advantages, from the low risks that are run to good and higher returns compared to those linked to current accounts; moreover, there is no expense for opening and closing the account in most cases and implies good taxation.
2023-06-29 05:04:04
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