For a prudent investor, the departure for the holidays must be preceded by shrewd moves or investments in his portfolio. In this market transition there are many operators who agree to park their money in deposit accounts that at least provide the total repayment of principal at maturity. In recent months, these products have seen a significant decrease in interest rates but there are those who also reserves 30% of the portfolio liquidity, focusing instead on a 20% equity and FX and 50% in government bonds. In fact deposit accounts are always interesting tools to leave temporarily deposited a sum of which has not yet determined the exact destination. Usually, if these investments exceed EUR 100.000, they are spread across multiple banks so as not to exceed the threshold protected by the Guarantee Fund for each bank in which you open an account.
For the small investor who has recourse to the deposit accounts only to avoid mistakes and risks, there is no doubt that the electronic money boxes are really disappointing in this period. Until last year the rates were on average 4% profit after cuts of the ECB and the decline in spreads today must settle for returns that are around 2.5% gross for money tied up in 12 months and this also for new customers which, as you know, are always treated with great favor. In fact, the economy of 18 to 24 months ago was really great. The spread was very high, the banks were trying to raise cash and then offering unusually high returns to which we have become accustomed to easily. The rate of return of deposit accounts varies widely from bank to bank because it is not only determined by the cost of money at the time but also by the trade policies of a particular lending institution, the level of safety and soundness of the bank.
The direct competitors of deposit accounts are now BTP. Some banks offer higher rates for bonds or by adding to the contract instruments such as repurchase agreements or certificates. The good news is that most likely yields will not drop further in the coming months, if not for those banks that realized that they were too generous. The only case in which rates could still fall is a further decline in the spread.