MADRID – In light of rising inflation, Spanish investors are flocking to real estate and gold as a ” haven”. They therefore ignore riskier investments such as cryptocurrencies, art, watches and foreign currencies.
This is evident from a report by the BFF Banking Group. Despite growing interest in savings deposits, which can offer returns of more than 4%, 30% of respondents admit they do not fully understand how they work. This points to a lack of financial education in the country.
Bank choice and trust
The research shows that the Spanish population has more confidence in deposits offered by local banks. 35% are willing to open an account with a bank operating under an EU license, while 38% are reluctant to do so.
Interest as the deciding factor
Although short-term deposits remain popular, it is the interest rate offered that is the deciding factor in whether or not to invest, according to 53% of respondents. Only 43% expect interest rates on deposits to rise shortly, and 46% think an ECB rate hike will result in higher returns. 62% find current interest rates unattractive, which explains the 65% who are reluctant to open a deposit in the next six months.
Economic prospects
More than half of respondents (51%) expect the Spanish economic situation to deteriorate in the coming months. This has consequences for spending patterns; 65% will cut major expenses, and 45% will cut everyday expenses.
Also read: Most ‘golden visas’ have been issued in these Spanish cities
