Families withdraw 3.3 billion in deposits in a month due to the need for savings and the search for more returns

Inflation, the rise in rates, the reduction in purchasing power, the increase in credit prices, the need to draw on daily savings and the search for alternatives to achieve greater profitability are behind the withdrawal of 3.3 billion euros in deposits that Spanish families made in the month of August.

At the end of that month, households had a total of 981.5 billion euros deposited in Spanish banks, the lowest figure since March 2022, after having withdrawn 0.33% of their funds between July and August alone, which which translates in absolute figures into about 3.3 billion. In an interannual rate, the volume is 1.22% lower than that of August 2022, which represents 12.1 billion euros less than then, according to data published this Thursday by the Bank of Spain.

The search for higher returns in other savings and investment products other than deposits would explain part of these movements, since individuals have been searching for months for formulas that allow them to benefit, in a less risky way, from the rate increases that the Central Bank European Commission (ECB) has carried out in the last year. But it's not the only motive.

The increase in inflation has eroded the purchasing power of families, who in many cases are forced to dip into accumulated savings to make regular payments.. In the month of August, in addition, many households resort to that accumulated bag of money to cover vacation expenses..

So far this year, the withdrawal already amounts to 22.8 billion, taking into account that in December the money accumulated in deposits by families exceeded one trillion euros in Spain for the first time in history..

In the case of companies, the balance is not more positive from a year-on-year perspective. Companies in the country also accumulate a withdrawal of 15.2 billion in deposits in the year. However, at a monthly level, the volume increased in August by 1.2% compared to July, which represents a sum of 3.6 billion, up to 302.6 billion.

In a year-on-year comparison, company deposits have fallen by 4.78%, although in recent months they have evolved both up and down, due to current liquidity needs.