Savings are once again a central issue for thousands of Spanish households. After years of minimum rates, the current monetary environment has reactivated interest in term deposits, even if they do not all offer the same profitability. While in Spain the rates remain moderate, in other European Union countries some entities clearly exceed this level.
The reference point remains the European Central Bank and its interest rate policy, which sets the deposit facility rate. However, this indicator does not require entities to remunerate savings at exactly this level, which explains the differences between countries and banks.
Why some foreign deposits pay more interest
The main reason lies in the structure of the European banking market. Unlike Spain, which is very concentrated, in other countries there is greater fragmentation, with small and medium-sized entities needing to raise liquidity quickly.
These banks use term deposits as a marketing tool, offering higher rates on specific terms to attract new customers. This is not an increased operational risk, but rather a strategy to capture in a highly competitive market.
Competition between European banks
In countries like Lithuania, Latvia or Italy, many entities compete internationally. Not having a large national clientele, they are turning to digital platforms to reach savers in other countries, particularly in Spain, Germany or France.
This model explains why they can offer interest rates above 2.5% without changing the security conditions of the product.
The role of the deposit guarantee fund
One of the key aspects is the protection of savings. Foreign deposits are covered by the Deposit Guarantee Fund of the bank’s home country, with standard coverage of up to 100,000 euros per holder and entity, as in Spain.
This means that, from a legal point of view, the level of protection is equivalent, as long as the bank operates within the Community framework.
What to check before hiring a deposit outside Spain
Profitability should not be the only criterion. Several elements must be analyzed in detail to avoid surprises.
- Minimum amount: some deposits allow you to invest from one euro, while others require 10,000, 20,000 euros or more.
- Term– The greater the time commitment, the higher the APR offered generally.
- Liquidity: Most deposits lock in capital until maturity.
- Early cancellation: If it exists, it generally implies a total or partial loss of interest.
Taxation of foreign deposits
Interest earned is taxed in Spain as capital income. In most cases there are no direct debits, so the saver must declare them in their annual income.
This aspect does not reduce real profitability, but requires correct tax planning.
How to contract a foreign deposit step by step
The process is simpler than it seems and is carried out entirely online from Spain.
Product comparison and choice
The first step is to compare the APR, duration, minimum amount and country of the guarantee fund. Specialized platforms bring together the offers of European banks and facilitate this task.
Registration and verification
Once the deposit has been chosen, it is necessary to provide the basic documents: DNI or NIE, proof of residence and a Spanish bank account from which the transfer will be made.
Capital income
After identity validation, the transfer is ordered and the money is tied to the deposit until maturity.
Deposits and paid accounts: two different strategies
Compared to term deposits, interest-bearing accounts offer greater flexibility and immediate availability of money, although they generally carry slightly lower interest.
For many savers, the combination of the two options allows them to balance profitability and liquidity, by allocating part of the capital to foreign deposits and another to daily use accounts.
In a scenario of persistently high rates, understanding why foreign deposits are more profitable and how to contract them correctly has become a key decision to optimize savings without taking unnecessary risks.
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