Offering the best conditions for 12-month terms is Banca AideXa, founded in 2020 by Roberto Nicastro and Federico Sforza, guaranteeing a gross rate of 5%.
Benazzi: “To choose among the best options, the duration is certainly one of the main aspects. Then, you need to consider whether it is a tied or free deposit account.”
Italian time deposit accounts: who offers the best options today? We Wealth, with the help of Paolo Benazzi, head of checking and time deposit accounts at ConfrontaConti.it and Segugio.it, has conducted a simulation comparing the performance of the best free and tied deposit accounts for 12, 24, and 36 months in January 2024, considering two sums to invest: 20 thousand euros and 50 thousand euros.
As shown in the table below, Banca AideXa offers the best conditions for 12-month ties. Depositing an amount of 20 thousand euros, you can indeed get a net gain (net of all charges, taxes, and stamp duties) of 701.92 euros, with a gross rate of 5%; with a deposited amount of 50 thousand euros, the net gain would rise to 1,754.79 euros, over the same duration. Followed by Banca CF+ which, offering a gross rate of 4.80% for 12 months, allows a net gain of 672.24 euros by depositing 20 thousand euros or 1,680.59 euros by depositing 50 thousand euros. The third spot goes to Solution Bank, which, with a gross rate of 4.75% for 12 months, guarantees a net gain of 664.82 euros with a deposited amount of 20 thousand euros or 1,662.04 euros with a deposited amount of 50 thousand euros.
Winning the return “race” on accounts in the 24-month investment scenario is once again Banca AideXa with “Conto Deposito X Risparmio” along with Banca Ifis with “Rendimax Vincolo Posticipato,” both offering a gross rate of 5%. Depositing 20 thousand euros in both cases allows a net gain after two years of 1,401.92 euros. Solution Bank and ViVibanca, on the other hand, propose a gross rate of 4.75%.
Tied Deposit Accounts for 36 Months: How to Choose
In the three-year investment scenario, the time deposit account option that guarantees the highest overall returns is offered by illimity. For new customers of the banking group founded by Corrado Passera, it’s about 5.40% on the “Conto Premium” (which includes a 7 euro monthly stamp duty compared to the 3 euros of the “Conto Classic”) non-redeemable. With a deposited amount of 20 thousand euros, it allows a net gain of 2,325 euros in 36 months; in the case of a deposited amount of 50 thousand euros, the net gain would amount to 5,922 euros over the same duration. Banca AideXa, on the other hand, proposes a gross rate of 5%.
The 5 Best Free Time Deposit Accounts and Interest-Bearing Checking Accounts
Moving on to free time deposit accounts, including interest-bearing checking accounts, the best option as of January 16, 2024, is Bbva. The Spanish digital bank has renewed its commercial offer in Italy, confirming the remuneration of the account at 4% and adding an additional 4% monthly cashback for new customers until January 31, 2025. With a deposited amount of 20 thousand euros, it allows a net gain of 559.33 euros, which rises to 1,449.76 euros if the deposited amount is 50 thousand euros. Ing offers a gross rate of 4% for the first 12 months, then 1%. The third spot goes to Banca Progetto, which proposes a gross rate of 4.25% until June 30, 2024, then 3.75% until December 31, 2024, and finally an ordinary rate of 1%.
Smart Bank Goes Into Extraordinary Administration
The time deposit accounts of Smart Bank, a digital investment bank of the Cirdan Group, recently caught the attention of the Bank of Italy. The central bank, with a provision on December 21, has indeed ordered the dissolution of the board of directors of Smart Bank and Cirdan Group and their submission to the extraordinary administration procedure under Article 70 of the Banking Consolidation Act. As stated in an official statement, Cirdan Group and Smart Bank “continue their activities”; at the moment, according to information available to We Wealth, the time deposit accounts of Smart Bank are not listed on the main online comparators but only on the bank’s website. In any case, it is worth noting that deposit accounts are 100% guaranteed by the Interbank Deposit Protection Fund (a consortium of private law established voluntarily in 1987 and subsequently made mandatory since 2011) which intervenes in the event of the forced liquidation of a bank.
But how to navigate through the best offers? “The supervision system and the depositor protection system allow filling the information asymmetry that savers face,” specifies Rocco Probo, an analyst at Consultique Scf. “That said, the analysis of some indicators of capital solidity (Cet1 and Tcr), profitability aspects (Roe and cost/income ratio), and credit quality (as loan default rates and coverage rates of deteriorated loans) can help understand the situation of the institution better.” However, he warns, it can always be useful to compare the returns offered with market benchmarks. “If they are too much higher, a higher investment risk is implied,” says Probo.
Time Deposit Accounts: Most Solid Banks
Consultique Scf has also developed an internal model for evaluating banks that offer time deposit accounts as a dedicated service. This model evaluates aspects of solidity (including some capital indices, including CET), profitability aspects, credit quality (as default rates on granted loans and coverage rates of deteriorated loans), and, for larger banks, also the perceived market risk. The banking issuers that, according to the latest surveys in June 2023, obtain the best overall synthetic evaluation are illimity Bank, Chebanca! (Mediobanca Group), Banca Valsabbina, Banca Farmafactoring, and Banca Profilo. Those receiving a “sufficient” synthetic rating are Banca Sistema, Vivi Banca, Cherry Bank, Banca Progetto, Ibl Banca, Banca Finint, and Banca CF+. Five of the banks analyzed in the article – Banca AideXa, Solution Bank, Ing, Findomestic Banca, and Smart Bank – are not monitored by Consultique Scf.
