Attractive alternatives find depositors to place their money in a downward environment interest rate. Next week, the ECB is expected to decide yet another interest rates by 0.25 of the unit, at which the euro interest rate will come to 2%. Correspondingly downhill, but not equal, they will also retreat interest rates depositfurther shrinking the anemic returns of simple depositors.
In this context, it is expected that the shift to low -risk alternative placements, which is already observed with the funds leaving the time deposits for banks’ Target Mattery, is expected to intensify. At the same time, demand is expected to remain in the Greek government.
Tomorrow Wednesday (28.5.2025), the State will make another auction of six -year -olds, € 500 million, with individuals (through banks or stock markets) for purchases of up to 15,000 euros. The registration period for interested parties begins today and will run until Thursday, May 29th.
The yield of the previous edition of the corresponding duration was 1.9% and it is a given that tomorrow’s version will also have a yield of less than 2%. It remains, however, an attractive performance, higher than the time -consuming time, as it concerns a six -month period of placement. And even tax -free, since bank deposits have a tax of 15%, as opposed to the yields of the taxpayers and bonds that are tax -free.
In addition, those who buy semesters will be able to expire in November, so they will collect their capital and interest, reinstalls in quarters of 1.8%yields, thus maximizing the performance of a 9 -month placement.
Meanwhile, banks’ target maturity products had inflows of EUR 3,995 billion in 2024 and an additional EUR 1,006 billion in the first quarter of 2025, attracting the deadline from deposits, with the lure of protecting the initial capital and their highest returns.
These are yields that reach 3% – 3.50% in the two years and 1.90% – 2.10% in the five years (these are the periods of placement offered by banks’ targets, although the National Bank offers these products in 18-24 months, while Eurobank is preparing to make a 3rd product).
It is noted that according to BoG’s latest data for March (data for April is expected on 30 May), the average deposit rate with a period of up to 1 year from households decreased by 10 basis points and stood at 1.40%.