After more than six weeks in prison by Covid-19, there are many concerns about the economy in Spain. In this scenario Unemployment and savings are among the main financial concerns of the Spaniards. HelpMyCash reported this to Cointelegraph in Spanish. The report is based on the fluctuations in savings products since the alert was reported in a Fintech N26 study and on information about banking companies.
They stated this, citing a study by the German Fintech N26 from HelpMyCash The Spaniards are concerned about three specific financial problems: “One is unemployment at 40%, and no less, because according to the Ministry of Labor and Social Economy the ERTE (temporary employment regulation files) affected almost four million people. On April 20, the unemployment rate was an alarming 3.7 million unemployed. “They also pointed out that this factor triggers the other two fears in this study, which focus on savings (73%) and, to a lesser extent, price increases for consumer goods (44%).
Is this the best time to save?
The financial and consumer habits of citizens have changed during detentionand the fact is that some expenses that were previously common to many (restaurants, transportation, leisure, travel) have been reduced to possibly track the rise in other expenses such as utility bills. However, that 73% of Spaniards fear that saving is a clear indicator that banks could see growth regarding the allocation of savings accounts, ”they stated from the comparison of the financial products HelpMyCash.
The report, which was shared with Cointelegraph in Spanish, states that savings products have experienced positive and negative fluctuations this month of April. HelpMyCash.com said, “Recently one of Raisin’s cooperating banks, BlueOrange, reduced the profitability of its deposit to a year that rose from 0.95% APR to 0.90% APR. Banco Pichincha did the same with its savings account, which was reduced to APR 0.30% (previously it paid the balance with APR 0.50%). However, not everything is bad news for savers, and there are many savings products such as paid accounts and time deposits that have improved their profitability, “they said.
On the other hand, they stated that Facto maintained its bank deposits for more than 12 months as the most lucrative on the market with an annual interest rate of up to 1.31% and also improved the interest rates of its shorter terms. WiZink has also done this with its time deposits (with which you can receive up to 1.30% APR) and with your savings account, which has an interest rate of 0.50% APR (previously 0.10%). APR) can spark savers’ interest in both their profitability and their online contracts.
Another company that also said interest rates have improved is BRABank, a Norwegian bank that works with Rasin and offers up to a savings account at 0.35% APR (before 0.30% APR) 10% to earn 100 euros gift thanks to raisin. “Given this framework of improvements, this high percentage of citizens who are serious about saving has more options than ever (due to their online attitude) to do so,” they added.
Unemployment concerns and banks pay benefits earlier
According to the document published by HelpMyCash, the complex picture is expected to help banks somewhat alleviate the situation of many households in Spain. “When several companies like Abanca, Bankinter, BBVA or CaixaBank increased their pension income for the second time in a row last week (in many banks the payment is usually made on the 25th of each month, but it was expected in March and April). Many have also decided to raise unemployment benefits, “they said.
Unemployment appears on the 10th of each month in the accounts of the unemployed, but this time the banks will continue the trend of pensions and in a joint effort by the Ministry of Labor and Social Economy and SEPE will pay the benefits for this month in advance granted.
The Ministry of Labor and Social Economy announces that several institutions will raise unemployment benefit income for the second time in a row between the next few days, May 3rd and 4th. Some of them are CaixaBank, Bankia, BBVA, Abanca, Bankinter, ING, Banco Mediolanum and Banco Caminos. More companies are likely to join this initiative later this week.
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