Term deposits now give higher returns than CTS accounts

In recent years, long service compensation (CTS) accounts have represented the highest interest rates for savingbut the latest reports from the Banking, Insurance and AFP (SBS) show that this is no longer the case.

Now the GSB data show that it is the term deposits offered by banks and savings banks that bring the highest profitability to clients of financial institutions.

The average rate offered by CTS is 2.86% in banks and 6.33% in municipal savings banks, while the annual rate on term deposits is 6.06% in banks and 7.1% in savings banks.

But what is the reason for this upward trend? rates for term deposits?

The president of the Mipyme committee of the College of Economists of Lima, Ronald Kazana, told the Gestión newspaper that the goal of paying more for savings is to keep them in financial institutions longer, but now they don’t have that motivation to do so. CTS since it was made available for free.

On the other hand, he argued that up to 80% of people with fixed deposit They keep their money saved until the end of this period, which is considered attractive to banks, which are now looking to grab more of these accounts at ever-increasing rates.

In addition, he recalled that the upward trend in rates is due to the constant increase in the discount rate of the Central Reserve Bank (CRB), which is currently at 6.5%.

Interest rates on loans also rose.

The SBS data also indicates that interest rates Credit cards averaged over 60% per year.

With only 10 banks offering credit cards, the effective annual rate (TEA) reaches 56.31%. If you add 2 financial and 1 rural savings and credit cards to the offered cards, you will get a weighted rate of more than 60% in total.

As well as interest rates mortgage loans they rose to 9%, the highest level in six years. A year ago, this figure was about 5.8%, which is the lowest level on record.