November auctions have dispelled any remaining doubts: the era of high-yield Treasury bills is over. Yields across all maturities — from 3 to 12 months — are stuck in a narrow band between 1.90% and 1.99%. This is a sharp contrast to a year ago, when rates were in the range of 2.6-2.8%. As a result, the most popular risk-free asset for individual investors in recent years is rapidly losing its appeal. Yet for those looking to preserve and grow their savings without taking on excessive risk, the market now offers attractive alternatives. There are financial instruments capable of delivering returns at least a quarter higher than current government bonds. This includes bank deposits, savings accounts, and money market funds, with yields starting at 2.5%.
The first thing to consider is term deposits. Here, you can find offers exceeding 2.5% per annum for almost any period comparable to promissory notes. For example, for a three-month term, Banco BiG offers new clients a 3% annual rate. The minimum deposit for this account is €10,000, with a maximum of €75,000, and the funds are protected by the Portuguese deposit guarantee system. For a six-month period, Portuguese bank BFS is ready to offer 2.8% per annum for new deposits, though the entry threshold is higher—ranging from €50,000 to €500,000. An important detail: this deposit does not allow for early withdrawal, making it suitable only for those confident they will not need the money during the term. You can also consider six-month offers from Banco BiG at 2.5%, or from Banca Progetto, which offers 2.55% for all clients with amounts from €10,000 to €90,000. For a one-year term, Lithuania’s SmeBank and Latvia’s BluOrBank stand out, offering rates of 2.69% and 2.61% respectively.
Another option is savings accounts. The most generous offers are usually linked to having your salary deposited into the account. Ibercaja leads the market, offering an impressive 5.09% in the first year and 2.01% in the second, on balances up to €12,000. To qualify, you need to ensure monthly deposits of at least €600. Bankinter, meanwhile, pays 5% in the first year and 2% in the second on up to €10,000, but its requirements are stricter: a salary of at least €800 per month, three card transactions, and three paid bills per quarter. The digital bank Openbank, part of the Santander group, offers 3% provided you have monthly deposits of at least €900, and you can deposit up to one million euros. Unicaja also offers 3% annual interest during the first year on a maximum balance of €20,000.
Finally, the third instrument is money market funds. These invest in short-term debt obligations with maximum reliability and liquidity. Products like Groupama Trésorerie, AXA IM Euro Liquidity, or AXA Trésor Court have delivered returns of around 2.5% over the past 12 months, and throughout 2023 and 2024 their yields have consistently exceeded 3%. When choosing such funds, it is crucial to pay attention to fee structures—the lower the costs, the more of the profit ultimately stays in the investor’s pocket.
