Spain: where to next after the deposit wars?

The intensification of the so-called ‘deposit wars’ in Spain last March, when interest rates on offer reached 4.5%, has been followed by longer-term products that more closely reflect the realities of the domestic market. Rebecca Hampson reports from the Structured Products España conference in Madrid

Stalemate in Spain?

It is now one year since deposit rates in Spain peaked at 4.5%, and times are changing, according to industry participants at the Structured Products España conference, held in Madrid on February 17.

"We are seeing some mid-cap banks still offering deposits with high interest rates, but for longer maturities," said Rodrigo de Sebastian, managing director at Santander in Madrid. "So instead of one year, which was the trend in 2010, they are offering deposits for between three and five years."

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