HSBC Malta with worst interest rates on fixed deposit accounts, Izola Bank gives highest returns

Maltese clients seeking to open a fixed term deposit account in Euro are well served by the banks in Malta

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Maltese clients seeking to open a fixed term deposit account in Euro are well served by the banks in Malta.

But a quick analysis of the terms on offer immediately shows discrepancies in the different terms offered, BusinessToday has confirmed.

When it comes to fixed term deposit accounts in Euro, HSBC Malta offers the weakest interest rates across the gamut of options available.

At the top end of the spectrum are a number of banks, including Izola Bank, APS Bank, FIMBank and Bank of Valletta.

BusinessToday canvassed the websites and online resources of 10 local banks: Agri Bank, APS Bank, BOV, BNF Bank, FCM Bank, FIMBank, HSBC Malta, IIG, Izola Bank and MeDirect.

All 10 banks offer term deposit accounts but Agri Bank and IIG do not provide details of interest rates offered on different terms, minimum investments and conditions. The other eight banks provided all necessary information on their websites.

As the table below illustrates, all eight banks offer term deposit accounts for 1, 2 and 3 years. Many make it also possible to open accounts for 3 or 6 months, and for 4 or 5 years.

Only APS Bank, BOV and HSBC offer a 1-month fixed term account. Izola Bank and BNF Bank offer term accounts for 7 years, and the former also advertises a 10-year fixed term account, with 3% interest.

APS Bank

APS Bank offers fixed term deposit accounts for up to five years. Besides 1-, 3- and 6-month term deposit accounts, the bank offers 1 to 5-year deposit accounts with competitive interest rates, ranging from 2% to 3%.

Interest can be added to the client's capital or credited to a savings or current account. Minimum deposits required vary according to the term deposit account. Interest rates are gross of tax and can be payable monthly, quarterly, semi-annually, annually, or at maturity depending on the type of term deposit.

Bank of Valletta

BOV offers the same term deposit accounts as APS, albeit with a different interest rate structure. Contrary to other banks' practices, BOV chose to offer a level 2.5% interest for all its deposit accounts covering 1 to 5 years.

BNFBank

BNFBank offers term deposit accounts for 3 and 6 months and for 1 to 7 years. Its 1 to 3 year accounts interest rates fall just above those of BOV and below or equal to those of APS Bank and izola Bank.

FCM Bank

FCM Bank revised its interest rates in November 2022. It offers five term deposit accounts, offering 2.31%, 2.01% and 1.58% interest on its 1-, 2- and 3-year term accounts respectively.

A minimum deposit of €2,000 is required and clients can choose quarterly, bi-annual, or annual payments with the option to compound annually for amounts greater than €15,000.

FIMBank

Through its Easisave scheme, FIMBank offers fixed-term deposits which are operated online through the existing platform. Clients can transfer an amount of their choice above €1,000 into an Easisave Fixed Term Deposit for 3, 6 or 9 months, or for 1, 2 or 3 years. Clients are also given the choice as to whether they want to receive their interest quarterly, annually or on maturity as applicable.

FIMBank offers six term deposit accounts, offering 2.5%, 2.75% and 3% interest on its 1-, 2- and 3-year term accounts respectively.

HSBC Malta

HSBC Malta offers the lowest interest rates available on 1 to 5 year term deposit accounts, at 1%, 1.05%, 1.2%, 1.2% and 1.2% respectively. The bank offer 0.3%, 0.4% and 0.5% interest on its 1-, 2- and 3-month term deposit accounts respectively.

For accounts of at least a 1 year term and a minimum balance of €5,000, interest is paid monthly.

For all other term deposit accounts, interest is paid on a yearly basis, or on maturity date where the term is less than one year. Rates of interest for deposit accounts with a balance of €500,000 or over can be provided on request.

Izola Bank

Through its Saver+ scheme, Izola Bank offers term deposit accounts with a fixed interest rate for periods ranging from 3 to 9 months and 1 year up to 10 years. Clients can choose whether to have interest paid quarterly, six monthly or annually.

Izola Bank offers 2.5% and 2.75% on its 1- and 2-year term accounts respectively and 3% on its term deposit accounts for  3, 4, 5, 7 and 10 years. It also offers a Premium Term Deposit for 1 year at 2.8%, but with a minimum investment of €20,000.

Me Direct

FIMBank has seven term deposit accounts, offering 1.25% and 2.25% on its 1- and 2-year term accounts respectively and 3% on its term deposit accounts for  3, 4 and 5 years.

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