For savers, the current financial landscape demands vigilance. If your savings yield less than 2% net, your money is effectively losing value daily. In one year, the purchasing power of those funds will diminish. You are losing money without realizing it. Compared to the options available, you are almost certainly losing ground on any account offering less than that, barring those without capital guarantees.
To illustrate, with inflation at 2%, a €10,000 term deposit earning 1% net will yield €100, but inflation will erode €200 of its value. Even with the €100 gain, your €10,100 will have the equivalent purchasing power of €9,900 in 2027. This is the reality we face.
Recognizing that many investors are hesitant to venture into products without guaranteed capital, I compile a monthly list of the best risk-free options – those with guaranteed principal and interest.
The Best Guaranteed Interest Rates Currently Available
This monthly assessment isn’t exhaustive and will be updated as better products emerge, and as I receive suggestions for lesser-known options. Several Swedish (Klarna) and Maltese banks (such as Easisave at 2.65% and MeDirect at 2.00%) occasionally offer higher rates, but I don’t detail them extensively as they aren’t readily accessible to most. If you’re comfortable opening an account with a Swedish or Maltese bank, you’ll likely find faster access to investment tools without capital guarantees. Be aware that many of their websites are in English. Feel free to investigate these names and their offerings; they are valid, being supervised by their respective national authorities.
As a disclaimer, this article is not an advertisement, and I receive no commissions from any institution. These are my criteria for maintaining objectivity. You should place your money where you deem appropriate.
Most Lucrative Deposit
I will consistently highlight the best term deposit I find, regardless of the bank (provided it has a guarantee up to €100,000), with a term of at least 1 year and a minimum investment of €2,500. (Bison Bank offers 2.50%, but requires a minimum subscription of €25,000). Shorter terms, 3 and 6 months, often have higher rates, but are typically promotional and require constant switching between banks – an impractical approach for most (BIG offers 3% at 3 months, with a €5,000 minimum). This information is subject to change, but provides a current snapshot of prevailing rates.
Currently, the best term deposit with at least a 1-year term is offered by Haitong Bank, yielding 2.4%, but does not allow for additional contributions or early withdrawals. If you require those features, the interest rate will decrease. Also, be mindful of maintenance fees. Always verify the conditions for fee waivers.
If you deposit more than €5,000 with Haitong Bank, you avoid maintenance fees. Below that threshold, you’ll pay €50 annually, effectively negating any profit.
Looking at other top deposits from recent months, the Premium account at BAI Europa has decreased to 2.15%.
Always confirm maintenance fees. If applicable, adjust your calculations to determine the net interest you’ll receive.
Brokerage Accounts with Remunerated Balances
I will present in a table the best brokerage account offering returns on uninvested funds. For now, I’ll use Trade Republic, as it holds client funds in German or Irish banks with corresponding deposit guarantees. With the European Central Bank maintaining its reference interest rate at 2.00%, Trade Republic has adjusted its rate accordingly.
Freedom24 no longer offers remunerated accounts.
I also haven’t included Trading 212, which offers an annual interest rate of 2.2% (in euros) on uninvested capital. According to an analysis by DECO, client funds are placed in money market funds, such as government bonds, term deposits, and other high-quality debt instruments. Capital in money market funds is treated as an investment and is not protected by any deposit guarantee scheme. Although the risk is low, it is not zero, according to DECO. It is not on my list of products with guaranteed capital.
My Savings, by Fidelidade
This is a product from an insurance company (Fidelidade). The guarantee is provided by the insurer itself. It’s not a bank deposit, but it does have capital protection. Insurers haven’t historically gone bankrupt (though we can’t predict the future). Interest is reviewed every six months and accrues daily, generating compound interest. It also benefits from more favorable tax treatment than term deposits. In January, interest rates rose to 2% and will remain in effect until July 2026.
Average Bank Term Deposit Rates
I also compare these options to the average of all bank term deposits, based on data regularly provided by the Bank of Portugal, although with a lag of about two months.
December data (the most recent available) indicates an average of 1.36% for deposits exceeding 1 year.
Savings Certificates
Finally, I will also track the performance of Savings Certificates (CA – Series F) in this comparison. As the 3-month Euribor has decreased, CAs currently yield 2.03%. You should always add the permanence bonuses after the beginning of the second year. From the beginning of the 2nd year to the end of the 5th year, 0.25% is added to the base rate. In other words, if you subscribed to Savings Certificates 1 year ago, with the 3-month Euribor at 2.03%, they will continue to yield 2.28%.
Always Seek the Most Profitable Option
As you can see, returns exceeding 3% with guaranteed capital are no longer attainable. This is detrimental to your savings. State it more plainly: you are losing money.
I hope this chart motivates you to always research the most profitable capital-guaranteed product on the market before falling into the “trap” of placing your money in the first term deposit your account manager recommends. In most cases, you have better alternatives in the competition and potentially with the State (Savings Certificates). Since you’re earning little, try to earn as much as possible.
Of course, to make money with your money, you’ll need to take some risk with investment tools without capital guarantees, such as PPR Funds, ETFs, Investment Funds, stocks, P2P, etc. There is more risk, but also a greater probability of obtaining higher returns in the long term. But that is another league altogether.
