Deposit accounts, boom and record numbers in Italy. What are they and their performance

There is a boom in deposit accounts and the numbers recorded by these financial investment instruments are record highs. More than 4.5 million Italians who chose them for their savings last year, more than 14 million investors who have already opened one. This is nothing new for savers from the north to the south of the country, although over time, due to the differentiation of investment instruments, they have ended up at the bottom of Italians’ choices. But now they are back in fashion. They did so more in the northwest of our country, where 41.5% of residents chose to invest their money in deposit accounts. And, surprisingly, those who make this choice – at a national level – are mainly the youngest people aged between 25 and 34, 45.5% of the total. Figures collected by and analyzed by Marco Brosio at Il Giornale who also explained in detail what deposit accounts are, what types there are and what their yield is.

Let’s start with the basics: “A deposit account is a financial product created to satisfy the investment needs of those who want to use their money with a little less risk compared to investments in shares or bonds, but at the same time do not want to get a certain profit.” But what advantages does it offer? Firstly, the returns are higher than those linked to current accounts. Then the deposit guarantee thanks to the “Interbank Deposit Protection Fund which guarantees the depositor an amount of 100 thousand euros even in case of bank bankruptcy.” Zero account opening and closing fees and, finally, reduced taxation – “pays 26% on gross profitability and stamp duty (equal to 0.2% of the amount invested) proportional to the capital deposited” Advantages, but also limitations: anyone who has a deposit account cannot issue bank transfers, does not support credit or debit cards, nor can they direct bills and other payments to it. You can only deposit and withdraw from one deposit account.

There are also three types of deposit accounts: the free one, which offers “maximum flexibility, allowing owners to withdraw their funds without restrictions”. But be careful: release the account holder, release the bank, which may vary the proposed interest rate”; linked, in which “resources are required to remain deposited for a pre-established period (generally 3 to 60 months)” and in exchange rates, interest rates are, in turn, fixed over time; indexed, “have an interest rate that may vary based on specific reference indices, such as market interest rates” and this type of account can offer potentially higher returns “but with a greater level of uncertainty than bank accounts”. traditional deposits”. Finally, Brosio analyzes the returns in detail: “According to simulations, in the case of term deposit accounts, rates maturing on bonds in 60 months have a gross return that can reach 4.75% , a percentage that drops to 4.45% in the case of 36-month bonds and 4.20% for 12-month bonds”. Those that are not linked have interest offers that can reach 5% but as mentioned “the bank can vary the rate of return, depending on market fluctuations”.

Source: IL Tempo