31 Oct Deposits at any price, what are we missing?
Remuneration on deposits is at historical lows, with the weighted average rate at 0.04%. There are up to twelve months at 0.03% and longer terms do not exceed 0.11%. Many banks already charge companies for their cash surpluses, and some, such as Bankia, have already decided to charge their institutional clients for safeguarding their liquidity.
Nevertheless, we have just learned from the Bank of Spain that cash and deposits account for most of the wealth of families (39%) and together with pension funds, still far in proportion, were the ones that increased their weight in the financial assets of households in the first half of the year.
From investment in shares to deposits there is a wide range of investment possibilities from greater to lesser risk that we should consider as an alternative before our savings not only diminish with inflation but we get to charge for having them in the bank.
Of course, in order not to be surprised, it is advisable to take good advice and know the risk profile of each one. For those who want to get an idea, I rescue here the simulation I did in this Blog (using a Finect calculator) on the return that a typical saver-investor starting from an amount of 4,000 euros and monthly contributions of 250 can get their money in 20 years.