The rise of remunerated accounts

In times of high inflation, like the ones we are living through, any investment measure that allows us to compensate for it, even partially, is more than advisable. Investing does not mean we have to buy risky stocks or cryptocurrencies. Today, it is also possible to invest without taking risks.

One of the products that has been growing the most in recent months is interest-bearing accounts. Just for keeping money in your checking account, the one you use in your day-to-day life, the bank pays you interest. And, unlike deposits, you do not have your money locked up for months or years, but you can use it without any problem. We are talking about remuneration ranging from 1.5% APR at large banks to 5.1% at smaller ones.

However, why leave money in an account without getting anything from it? To see an example in the best-case scenario, a bank offers 5% up to a maximum of 20,000 euros. We are talking about 1,000 euros in interest after one year. When choosing an interest-bearing account, we must look at the conditions, which usually include having your payroll and/or bills domiciled there, although there are also some without requirements, and at the capitalization of interest, that is, how often they pay it to us. It is much more favorable for interest to be paid month by month than every six months, for example. Thanks to compound interest, the more capital we accumulate, the higher the return we will obtain.

It is expected that, towards the end of the year, the ECB will continue to raise interest rates, which could further increase the remuneration of accounts. Without a doubt, it is a great opportunity for all those who do not want to take risks, but also do not want to let the snowball of inflation drag you down. Ultimately, it is about making money work for us.