by The rise in Euribor is a headache for those with mortgages linked to these rates, but it is positive for some savings products, such as ‘old’ savings certificates (CA). As a result of the recent development of the three-month Euribor, the yield on February CA subscriptions increased to 3.403% (gross) or 2.45% net.
“The gross interest rate for new subscriptions to Postal Savings Certificates, Series E [a única em comercialização]in February 2023 it stood at 3.403%,” the Public and Public Debt Management Organization (IGCP) reports on its official website.
THE The price set on a monthly basis is valid for three months and covers updates that occur every quarter of the subscription or previous series.
It’s another jump from the 3.088% gross rate set in January and brings the base yield closer to the state-set maximum of 3.5%.
The CA base rate is linked to the three-month Euribor, which has risen significantly since the summer, plus 1%. Permanency premiums can also be added to this amount, which are 0.5% from the second to the fifth year and 1% from the sixth to the “life” term of the product, which is ten years. .
The three-month Euribor rate, which entered positive territory in July, stood this Wednesday at 2.483%, down slightly from 2.512% recorded the previous month.
The better earnings of this product, compared to term deposits, explain the sharp increase in subscriptions in recent months. Last December alone, investments amounted to 1994 million euros, almost two billion euros. With this record price, the stock of KA from €17.709 million to €19.626 million, an increase of 57.1% compared to €12.490 million recorded on December 31, 2021.
The average interest rate on term deposits rose very slightly in November (latest data available), to 0.35% gross (0.24% the previous month), the highest since December 2016.
According to data from the Bank of Portugal, private bank deposits increased in 2022, reaching a total of 182.4 billion euros, 9.6 billion euros more than the previous year. In this universe, the weight of demand deposits continued to increase, accounting for 49.5% of the total (44.9% in December 2020 and 47.8% in December 2021), totaling EUR 90.3 billion .
