Are foreign deposits more profitable? Advantages and steps to hire them

Although he saving For many, it is a complex and difficult task today in Spain, there are those who seek to get the greatest return on their money. For this, many They look for deposits where they can find good rates that will help them at least grow their economy.. However, for some, Spanish deposits fall short compared to other foreign ones, so they set their sights on fixed-term deposits that exceed 2% of the European Central Bank (ECB) deposit rate. Are foreign deposits truly profitable? What needs to be done to hire him?

Why a foreign deposit is more profitable

HelpMyCash experts explain that Foreign deposits have different profitability largely due to competition and the fragmentation of the European market. Many entities, especially smaller ones or those that want to attract new clients and liquidity, compete by offering very attractive rates on specific fixed terms.

However, financial experts recommend, before taking out a fixed-term deposit in a European bank, “check which deposit guarantee fund is behind it and what its limits are”. Furthermore, it is important to know the minimum contracting amount, since accessibility may be different from one deposit to another, with some being able to invest from 1 euro, but others requiring a greater financial investment.

We must also pay attention to the concept of liquidity; In general, the invested capital is usually frozen until the term expires, but the contract may stipulate a cancellation with a penalty, details that must be known.

It should be noted that deposits in platforms like Raisinwhich connect with European banks, are protected by the Deposit Guarantee Fund (FGD) from the country of origin of each bank, maintaining the EU standard of 100,000 euros per owner and entity, which ensures the same security as a national bank, but under the legislation and FGD of its country, such as that of Germany or Lithuania, for time deposits and savings accounts

Steps to contract a foreign deposit if you reside in Spain

Before hiring a foreign deposit it is important to compare in order to find the best option or the one that best suits your personal situation. For this, key points: APR, term, minimum amount and the guarantee fund that backs it. By not having physical offices in Spain, this work is accelerated according to HelpMyCash experts with platforms such as Raisin.

Once you have chosen the product, you will have to provide basic documentation such as ID, proof of residence and bank account opened in Spain to Raisin. All of this is necessary so that they can verify the identity and finally transfer the funds to the platform, which is later responsible for transferring the funds to the chosen deposit and generating all the documentation.