That’s how 12-month CDs yield better than Treasury bills.

Today the National Treasury held an auction of 6- and 2-month bills and placed €5.035 million, which in both cases carried a higher marginal interest rate, meaning Spain is paying more for them to investors. Thus, in the latest releases to the market Rates on this financial product reached 3.359% – out of 3.314% -. Despite the changing trend, fixed deposit option private companies can offer much more interesting results for the consumer.

Do fixed deposit need to do initial investment of money in a private enterprise this amount accumulates profits in accordance with previously agreed interest rates and during the time specified in the contract. Both the duration and the amount of the deposit may vary from one contract to another, but always once it is established. It is maintained throughout the entire operation. Differently, Treasure letters they always have nominal amount 1000 eurosalthough this can be expanded if multiplied by several letters. The validity period varies from 3, 6, 9 or 12 months.. In both cases, since it is a fixed income, profitability guaranteed and, therefore, the buyer has a profit that he will receive after the expiration of the insurance period.

Possible tax withholding

Raisin, The savings platform, which analyzes various financial products, compares time deposits that offer the best conditions. Among those who stand out Spanish financial institution not found as the returns they offer are much lower than their European counterparts. If you choose a European deposit, you must take into account that some countries, such as Latvia, apply income tax to these operations, others, such as Italy, do not withhold any taxes.

Best deals

If we celebrate the same period 12 months letters drawn this week and we installed investment 10,000 euros (equivalent to ten treasury bills), among the various offers we receives highlights the 3.95% profit margin offered by Chinese company Haitong, which, despite not being part of the EU, operates with the support of the Portuguese Deposit Guarantee Fund. The Italian tank also stands out Banca Progetto with an annual interest rate of 3.85%. there is a bank right behind it The Latvian bank BluOr and the Portuguese BAI Europa have an interest rate of 3.80%.

The 12-month note yield is still above the 3.314% noted at the last Treasury auction. interest rate 3.65% proposals owned by subjects Pay Ray and TF Bankbased in Latvia and Sweden respectively. The Scandinavian country guarantees that There is no type of tax withholding. Another Swedish bank Klarna offers an annual rate of 3.59%.slightly more than a fully digital object Bfjord Bank 3.55%, based in Lithuania, which applies a withholding rate of 15%, which can be reduced to 10%. The last deposit with a higher yield than bills is the deposit Private bank leasingis in Italy and with an annual interest rate of 3.50%.

Be careful with the fine print

When investing in a fixed deposit, you need to consider many factors; the first one yield or interest rate what do you suggest, always annual April, since this includes possible additional costs for the operation. It is also advisable to take into account the presence some kind of opening or closing feeif the operation includes the possibility automatic renewal or if it is possible to cancel the operation at any time and withdraw the invested money or you need to wait until the end of the signed period.