Javier Serrano
Updated Tuesday, February 13, 2024-18:55
Current accounts are the most basic banking product for any client, they are the usual bank accounts where we deposit our money, and which we can use with total freedom and flexibility. And we say that it is the most basic product because the rest of the products that we contract in our financial institution need to be linked to a checking account: a credit or debit card; mortgage or any other type of loan; direct debit of receipts; payroll collection; investment in funds... But lately we hear more and more about
paid accounts
and we want to explain what they consist of and which ones offer the best profitability in this month of
February 2014
.
What is a paid account?
So far in the 21st century, having a bank account has not generated any type of economic return. On the contrary, between the commissions we pay to banking entities and the effect of inflation, the money we have deposited in our account each year loses a little of its value. In recent years, in a context of low interest rates and low inflation, it is understandable that banks have not wanted to maintain cash and balances in current accounts, and did not offer any bonuses to clients.
But for some time now, interest rates and inflation have risen significantly.
This means that the loss of value of money from one year to the next is much more pronounced: with 100 euros, we buy many fewer things today than with 100 euros a year ago.
So, on the one hand, banks are beginning to find it more profitable to have money to lend, and on the other, to keep customers they have to make attractive proposals, or they may possibly leave for another bank. And one of the most immediate solutions has been to remunerate the accounts, paying interest to the client for maintaining a certain balance. Now it's up to clients to find the best paying account.
By the way, this remuneration of accounts is not new: it was common in the 80s, in a context of high rates. It is something that was lost throughout the 90s and that now, after 25 or 30 years, we have recovered. It's a question of supply and demand.
Characteristics of paid accounts
To find the best paid account, we must pay attention to
certain characteristics.
First of all, of course,
the interest that an account gives us.
And
we found some that guarantee 6%.
It is a very high profitability, but we must pay attention to the restrictions: normally, this interest is maintained for a period of time, a few months, and then it drops significantly. And it is also usually limited to a maximum amount.
Depending on our circumstances,
we may be interested in a paid account with a lower interest rate, around 3%, but that returns more capital and for a longer time.
Each one must calculate how much profitability they will obtain. Another aspect that we must take into account is that the profitability of interest-bearing accounts depends on the economic context, and that fluctuations in interest rates and inflation will lead to periodic reviews of the conditions.
Another element that we must include in the equation is the obligation – or not – to contract linked products.
Sometimes, to obtain the maximum bonus from our paid account, we must take out credit cards or other products from the financial institution itself, make a minimum monthly transaction, direct debit certain receipts... In some cases, these actions have a certain cost , so we have to see how it affects our profitability.
In any case, paid accounts are an excellent alternative to keeping money deposited without any type of remuneration. They do not completely compensate for the rise in inflation, but they mitigate its effect, and of course, the interest is taxed by the Treasury, the profits, however small, are integrated into the capital returns. But
if we know how to study our options well, paid accounts are a flexible and immediate product that also gives us a certain return.
Best paid accounts
Below, we give you details of some of the most interesting paid accounts that exist on the market at the moment.
PAYROLL ACCOUNT
Bankinter
Remuneration APR%: 5%
Maximum paid balance: €10,000
Go to offer
DIGITAL ACCOUNT
Bankinter
Remuneration APR%: 1.50%
Maximum paid balance: no limit
Go to offer
PAID ACCOUNT
Freedom 24
Remuneration APR%: 3.87%
Maximum paid balance: no limit
Go to offer
SMART ACCOUNT
EVO
Remuneration APR%: 2.85%
Maximum paid balance: €30,000
Go to offer
ONLINE ACCOUNT
Sabadell Bank
Remuneration APR%: 6% for the first three months and then 3%.
Maximum paid balance: €20,000
Go to offer
PAID ACCOUNT
TradeRepublic
Remuneration APR%: 4%
Maximum paid balance: €50,000
Go to offer
Article prepared with the collaboration of Kelisto