Savings certificates may remain at the maximum rate of 3.5% for the next two years – Economy

The Government admitted the possibility of moving forward with changes in the rates of Savings Certificates (CA) until the end of 2025. According to the newspaper Public, the good return on the public debt product may remain at the level of 3.5%, where it currently stands, over the next two years. This is due to the high transfer of savings to the Executive’s traditional products, among other factors.

The rise in the three-month Euribor rate is mainly responsible for the increase in the volume of savings applied by families, especially since September 2022, since the interest on three-month savings certificates is indexed to that rate.

Another explanation for the strong adherence to CAs lies in the fact that banks offer interest rates that are considered low, with the average standing at 0.65% in February this year.

The Minister of Finance referred to the possibility of making these changes, taking into account that subscriptions carried out in the first quarter of the year are close to the limit stipulated by the Government (around 10.250 million euros for Savings Certificates and for of the Treasury).

“We will have to assess how subscriptions take place over the next few months”, said Fernando Medina, taking the opportunity to highlight that private banks “have not found an offer in the market from the point of view of savings that is compatible with adequate remuneration”.

“Savings Certificates are an important competitive factor in the market, putting pressure on bank savings products to be more competitive”, stressed DECO PROTEST economist António Ribeiro, quoted by the newspaper Public. For the analyst, without the competition factor “we will continue to have a miserable scenario for saver’s savings”.

The demand for savings certificates is hitting historical records. They are responsible for more than 30% of the debt this year. At the end of March, the weight of CA in the public debt stock was 9.9%, higher than in December (6.8%) and March of last year (4.6%).