EBN Banco announced this Tuesday the launch of a new deposit that offers a maximum return of 3.55% APR (Annual equivalent rate). It has several durations: three, six and 12 months. To hire him, you must, yes, contribute at least 20,000 euros. This profitability places this deposit as the most profitable among those that can be purchased in Spain, a ranking led until now by Cetelem. What is striking about EBN’s announcement is that it comes at a time when the vast majority of banks are reducing interest on their term deposits.
This 3.55%, on the other hand, means almost one point more profitability compared to what Treasury bills bring in Spanish at the same time. At the latest 12-month note auction, held this Tuesday, interest was slightly higher at 2.6%, compared to 2.57% in last month’s auction (which was a plus low for almost 2 years). 12-month Treasury bonds are about to lose 2.5% profitability.
In the note sent to the media it is explained that this is a “combined deposit”, since this implies a link: the subscription of term deposits (with this yield of 3.55%) is combined with an investment through managed portfolios or investment funds).
These deposits can be of two types, “but always”, according to Manuel Puente Gascón, Customer Director at EBN Banco, “these will be clean class funds, or those that will have cheaper subscription fees for the retail client”. EBN is one of the few entities to offer calls in Spain own lessons of funds, cheaper for investors, because they eliminate retrocessions (the part of the price that the marketer keeps). “The average commission savings for these products is around 30%,” Puente says.
One of the product types requires a minimum investment of 20,000 euros (10,000 euros in deposits and another 10,000 euros in funds). The investor can contract directly via the website, in the supermarket of EBN Banco’s investment funds, i.e. more than 1,700 national and international funds, as detailed in the press release sent by the bank.
The other type is contracted through the Managed Wallet Service of the EBN bank. The client delegates management to a professional investment team based on their risk profile. The minimum investment is 60,000 euros (10,000 in deposits and 50,000 in wallets) and there are four portfolio models: conservative, moderate, dynamic or aggressive. “The value proposition is independence, since the entity’s products are not commercialized and the client has access to the cheapest classes of investment funds,” the entity indicates in its note.
Why launch a product with this feedback at this time? Manuel Puente explains: “In this context of falling deposit yields, we meet many savers long-term investments that they had considered investing in their life, but now, after 2 years usually at rates above 3%, they tell us who wish to move from the status of saver to that of investor. This is why we thought of offering them this product, which includes a deposit part at an attractive rate but which also allows them to enter the world of investment with us.
