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Interest rates on savings

Interest rates on savings

Old Nov 25th 2011, 8:00 am
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Default Interest rates on savings

Can anyone recommend somewhere to deposit a reasonable sum and get a 'decent' interest rate?

I've looked at various banks and there are always silly problems at the last moment - one bank was offering 3.7% (instant access) but then charged massively for withdrawals over 600 euros!

Other banks only advise to invest in the stock market (in companies like Telefonica, Iberdrola etc.) - I think not!!!!


I'd like the money here in Spain but am beginning to believe that I can get a better rate back in UK.
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Old Nov 25th 2011, 11:15 am
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Default Re: Interest rates on savings

I don't think you are likely to get a good deal here in Spain, banks here used to fill their windows with posters showing the interest rates, now you don't see that as the rates are so low.
Perhaps Off-Shore Internet Banking might be the answer, but if investing here be careful as things are not always as they seem to be.

I invested a substantial sum in a so called safe guaranteed higher interest account, only to find when they sent me the paperwork that it was in stocks and shares. ,
It lost 600€ within days and has not regained all of the loss in over a year.

Good luck, if you find what you are looking for please let us know.
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Old Nov 25th 2011, 11:24 am
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Default Re: Interest rates on savings

I see the Valencian authorities are offering one year bonds at 5% and two years at 5.5% with cast iron guarantee, so they say.
It's been mentioned on the local news quite a few times recently.
It's only open for applications until the 12th of Dec.,I believe.
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Old Nov 25th 2011, 11:29 am
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Default Re: Interest rates on savings

Originally Posted by snikpoh View Post
Can anyone recommend somewhere to deposit a reasonable sum and get a 'decent' interest rate?


Other banks only advise to invest in the stock market (in companies like Telefonica, Iberdrola etc.) - I think not!!!!

The banks are fond of pushing these to pensioners and they always quote Telefoníca. They have been showing a loss for years. A friend invested 25,000 for 2years and recieved 22,400 back, that was Solbank. I would look off-shore.
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Old Nov 25th 2011, 11:32 am
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Default Re: Interest rates on savings

This link was on a previous thread

http://www.iahorro.com/

but there are not many good deals around
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Old Nov 25th 2011, 1:58 pm
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Default Re: Interest rates on savings

I did research on this a few months back and I came to the conclusion that you can get better interest rates here in Spain than you could in the UK. You will have to put your money away for a decent period of time though, i.e. 12 months / 2 years.

Solbank were offering 5% only a short while ago, but iirc that was for 12 months and then it dropped to about 2%

Banks and bonds in the Uk were offering between 3 & 4.something percent but you had to put it in for at least 12 months.

I was going to draw some investments out and bring it to Spain (SOL have a £ account) but just as I started the crash happened on stocks again
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Old Nov 25th 2011, 3:53 pm
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Default Re: Interest rates on savings

I get 3.1% from Barclays.es
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Old Nov 25th 2011, 5:08 pm
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Default Re: Interest rates on savings

It's bad here, I have been lied to in two banks over the last 3 months, just to get my money, I have had to move my money twice.

I was offshore until the cr$ap started and saw the bank I was with was collapsing, (BnB) it got took over after) I am mostly in the UK bank now, it's safe but with a futile interest. I had a huge scare when I couldn't access my online offshore account.

This week Had a Barny with my latest Spanish bank, they promised me 4percent, I checked this week and Nada. Now they say I should have opened another account at the same time to transfer it, what a load of bollox, my Spanish isn't that bad, I know they are trying to fleece us.

My money is now in a safe place with very easy access, if I can't make money on it nor can they, be careful and best of luck, it,s a nightmare out there.

Oh and watch out for some of their charges for receiving cheques and sending them, you may be astonished and angry like I was.

Last edited by anonimouse; Nov 25th 2011 at 6:22 pm.
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Old Nov 25th 2011, 5:47 pm
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Default Re: Interest rates on savings

Originally Posted by anonimouse View Post
It's bad here, I have been lied to in two banks over the last 3 months, just to get my money, I have had to move my money twice.

I was offshore until the cr$ap started and saw the bank I was with was collapsing, (BnB) it got took over after) I am mostly in the UK bank now, it's safe but with a futile interest. I had a huge scare when I couldn't access my online offshore account.

This week Had a Barny with my latest Spanish bank, they promised me 4percent, I checked this week and Nada. Now they say I should have opened another account at the same time to transfer it, what a load of bollox, my Spanish isn't that bad, I know they are trying to fleece us.

My money is now in a safe place with very easy access, if I can't make money on it nor can they, be careful and best of luck, it,s a nightmare out there.
Stuffed under your mattress I presume.

I agree with you about Spanish banks fleecing ppl.with false promises of interest rates, then grabbing it all back one way or another or failing on their promises.

I've come across numerous instances and now would never use a Spanish bank for anything more than a current account even though that costs as well.
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Old Nov 26th 2011, 9:39 am
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Default Re: Interest rates on savings

Savings? Interest?? Spain???
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Old Nov 26th 2011, 9:40 am
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Default Re: Interest rates on savings

Originally Posted by Dick Dasterdly View Post
Stuffed under your mattress I presume.

I agree with you about Spanish banks fleecing ppl.with false promises of interest rates, then grabbing it all back one way or another or failing on their promises.

I've come across numerous instances and now would never use a Spanish bank for anything more than a current account even though that costs as well.

And the problem is?

We have never used a Spanish bank for anything other than a current account. Any serious savings are in the UK.
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Old Nov 26th 2011, 10:03 am
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Default Re: Interest rates on savings

I have an investment with Caja Murcia that has made 9.11% and tax retentions are lower here.
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Old Nov 26th 2011, 10:36 am
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Default Re: Interest rates on savings

Originally Posted by scampicat View Post
And the problem is?

We have never used a Spanish bank for anything other than a current account. Any serious savings are in the UK.
To be serious,the mattress is a little too obvious, but there can be viable secure alternatives depending on the nature of the house and its surrounds.

Despite the desperate times some ppl.are suffering, I have little doubt that the many Spanish ppl. have large quantities of readies well squirreled away.

It's worth bearing in mind that approxomitely half of the Bin Ladens,(500 euro notes), rapidly disappeared from circulation shortly after being issued.
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Old Nov 26th 2011, 3:31 pm
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Default Re: Interest rates on savings

Came across this today, anyone heard of them? The offer runs out soon though and you do have to lock it away to really benefit.

http://www.oficinadirecta.com/deposi...le.html?dv=531
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Old Nov 26th 2011, 3:57 pm
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Default Re: Interest rates on savings

The best thing I did was to put some money in a national savings bond (UK). I was doing an investment for Grandson and I thought why not invest myself. Follows the RPI plus1% so they are now a little over 6%, less tax too.

I saw this on SPI forum, couldn't link it. Something to think about before keeping euros in the bank

The possibility of Euro breakup was put at 50:50 yesterday. What happened in Argentina and more recently Iceland is a a guide to devaluation/currency collapse.

At first there will be EITHER a bank run as people attempt to get their money out or government announces a sudden closure of the banking system and capital controls. Transferring money in or out of the country is impossible (Greece has seen much of it wealth fly oversea already).

Banks, ATM's, credit card systems stop working. Cash is still accepted but foreign exchange is impossible to get or at a very high level. How long this period lasts is difficult to say and depends on the government's organization skills and the state of the rest of the world ensuring a new currency is available. Printing new notes will take time, especially as there maybe a dozen other countries trying to print simultaneously.

Having a foreign currency account in a local bank won't help. In Argentina the USD accounts (many people had them) were converted to local currency and devalued by 75%. In Iceland they were frozen for months and then very restricted.

As time goes on a preference for real hard currency such as USD and GBP and precious metals becomes to the fore. High value items such as Rolex watches became popular in Iceland as they were the best way of getting cash out of the country.

Credit and debit cards will be rejected at home and abroad, eventually debit cards start working first then, slowly credit cards.

Foreign travel is restricted as converting local currency into hard currency requires special permission, proof of taxes paid and be limited based on requirement and daily spending limits, say £50/$50 per day. Iceland still has these limits three years later and Argentina 10 years later has just re-imposed them.

The lesson from these two collapses are;
Short term
Ensure that you have a ready supply of cash in local and foreign currency to tide you over when the banks are shut; try and encourage your family to keep enough cash too

Long term -

Spread your risk and have a source of foreign income (hence the boom in buying London property by the Greeks etc).
Put your money into hard assets (property in Argentina is basically worth the same as before in USD, based, however its directly proportional to wages. Holiday homes are pretty useless)
Ideally convert a part of your wealth to precious metals.Personally I'm not so sure about this, its too late now.


Obviously, even if you think its extremely unlikely to happen, have a stash or hard cash that will allow you to function until banks start operating, if its in a foreign currency like the £,$ or Euro even better. This should be enough for a week or longer.
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