The attractiveness of term accounts depends on the evolution of interest rates and decisions of the European Central Bank. How to use them in the event of an increase? In the event of a drop? Responses
You have a sum of money you will not need for a while. You might as well place it and make it grow. The first reflex generally focuses on savings booklets. Flexible, they allow you to remove the amount placed at any time.
If you are sure you don’t need your money for a few months, you can get better with the term account (CAT). This is a deposit account. On the other hand, the funds are blocked for a period of at least one month, at the most of ten years, against a remuneration planned and negotiated at the start. The longer the fundraising of funds, the higher the applied interest rate. The latter is established in two ways:
THE unique yield Throughout the period is set by a contractual document concluded between the saver and his banker.
THE progressive yield Over the period increased as the quarters, or semesters, go to the end of the CAT.
This rate takes as reference that of the monetary market. It varies every day from the guiding rates decided by the European Central Bank. Then, each bank applies a discount corresponding to its margin.
| Bank | Product | Duration | Gross annual rate |
|---|---|---|---|
| Source: the Internet user | |||
| Cortal | Guarantee12 | 12 months | 4.97 % |
| ING Direct | Term account | 6 months | From 4.30 % to 4.60 % |
| Crédit Agricole | Varius range | From 1 month to 10 years | From 3.95 % to 4.20 % |
| Mutual Credit | Tonic range | 5 years | 4 % |
| Société Générale | Quarterly income account | 3 or 5 years | From 3.50 to 3.70 % |
| LCL | Rhythmic optilion II | 1 month | From 3.50 % |
| Popular banks | Fidelis | From 1 month to 10 years | From 3.50 % |
| Postal bank | Tonal range | 6 or 12 months | From 3.40 % |
| HSBC | Term account | From 1 month to 5 years | From 3.30 % to 3.70 % |
| BNP Paribas | Potential 1.2.3 | 3 years old | 1.50 % (1st year) to 2.40 % (3rd year) |
When the rates go back
In early July 2008, the European Central Bank decided to increase its key rates. A decision to curb inflation. In such a context of rates, Better to engage in short periods. Otherwise, it is to deprive oneself of gain opportunities. Indeed, the remuneration being fixed during the deposit, any increase master rate During the period of immobilization of funds is not reflected, even if the remuneration is progressive.
Thus, a CAT concludes for a period of 6 months in June 2008 cannot benefit from the increase decided by the ECB in July 2008, before December 2008. Over a period of one month, conversely, it is possible to take advantage of the rates of rates without delay. And as the ECB does not act like its American counterpart and is often moving its rates, now, a three -month CAT seems a good opportunity to seize a possible other come back to the fall. Brief, During the rating periods, the right reflex is not to rush to the CAT of more than six months.
And if the rates drop …
The approach is completely different in a decreased rate scenario. On the contrary, it is advisable to Place on accounts as twelve to one hundred and twenty months old. Thus, you benefit as long as possible from a guaranteed rate level while the rates over the period will be lower. From the moment when the rates offered are at a level lower than that of regulated livers, the term account no longer constitutes a relevant placement.
Learn more : What you can negotiate with your bank