In July, households took money out of government savings products for the eleventh month in a row, according to Negócios. The holdings of savings and treasury certificates fell by €102.16 million to €44,183.32 million, according to the Bank of Portugal.
In July, the volume of savings certificates fell by 19.29 million euros on the month to 33,941.31 million euros, marking the eighth consecutive decline. Treasury certificates, whose holdings have been falling since November 2021, fell by 82.87 million euros in July to 10,242.01 million euros.
Until August last year, money flowing into savings certificates more than offset the outflows recorded in Treasury certificates, but that no longer happened, leading to a decline in the total value of the two products since September. That trend has continued into 2024.
With bank deposits increasing and savings certificate interest rates slowing, the introduction of a new series has made the government’s savings products less attractive. The previous E series offered a gross rate of return of 3.5% over 10 years, while the current F series sets a maximum base rate of 2.5% per annum over 15 years. Retained premiums have also fallen.
CTT launched online subscription for savings certificates and digital savings.
Author: Miguel Bravo Morais And Ricardo Ramos
Source: CM Jornal
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