Paid bills: what do they consist of?

Payment accounts is a banking product whose main objective is to promote savings among customers. It is a model that has been installed in the sector for a long time and is conceived as a strategy so that they can operate with your financial institution. Practically all of you have a product with these characteristics, even when with its own identity. Today, payment accounts are present at BBVA, Banco Sabadell, Santander, Caixabank, Evobank and a long list of credit institutions that offer this savings format.

One of the purposes of payment accounts is that users can get a small return on their savings. So that little by little your capital of this banking product increases. However, its performance is today at the lowest level in recent years. As a result of the policy of lowering the price of money that the European Central Bank (ECB) has carried out to get out of the economic crisis generated in 2017. To the point that the price of money today is not completely worth anything. Namely, is at 0% As a consequence, the attractiveness of paid accounts has diminished considerably in recent years.

Paid accounts nowadays do not offer more than 0.1% as a consequence of this monetary strategy. Where only high paying accounts can exceed these low levels. Even when in exchange for fulfilling a set of conditions, as you will have the option to see below. Whatever the case, they have not reached the levels of the first years of this century in which a savings account with an interest rate higher than 1% could wonderfully be formalized. Or even the popular super accounts that generate the best return on user savings.

Accounts: how much do you offer?

Decidedly, paid accounts are no longer formed as an instrument to increase savings. If not, on the contrary, it is a banking vehicle that serves to maintain ties with our bank. From where you can address household bills (gas, electricity, water, etc.), make a transfer or basically receive your payroll. On the other hand, from this type of bank account you will be able to contract another series of banking products, even for free. From traditional credit or debit cards to time deposits or different savings plans.

Paid accounts are today a indispensable banking product, but that hardly attracts any kind of interest. At least until current monetary policy is followed by the European regulatory body. But even so, the payment accounts are not uniform but you can select between different models that fit your bank user profile. Not surprisingly, this is one of the great contributions that payment accounts have been developing for some years. Beyond the services or benefits that it offers you at all times.

High paying accounts

It is the most favorable savings format for your interests as a bank customer. Among other reasons because it is the product that gives you the most interest at the moment. Your performance can go up to about 1%, but complying with a series of basic requirements. One of the most common is that you will have no choice but to guide your payroll, pension or regular income to boost your profitability. In other cases, they will even ask you to link other home receipts or even buy insurance. The so-called high-paying accounts focus on this strategy.

The current offer of these accounts with these special characteristics has decreased in recent years. To the point of having a couple of very specific banking proposals. Where they can also impose a Minimum balance in it it will be quite demanding. On the other hand, customer participation is also present in your marketing. Through the contracting of other banking products (investment funds, pension plans or insurance). Well, as you connect more with your frequent bank, the interest generated by this type of account will increase.

Interest below inflation

A characteristic of what payment accounts are is that they do not allow you to recover the price increase. Because they are below the cost of living. To this end, it should be remembered that the Consumer Price Index (CPI) increased by 0.1% in March compared to the previous month and has already reached its highest level since last November, with 1.2, according to the latest data provided by the National Institute of Statistics (INE). In practice, this means that payment accounts are not profitable from any point of view. It should come as no surprise that you are losing money every month as a result of this monetary trend.

If what you really want is to improve your balance sheet, it will be much better if you resort to another banking product that is more profitable at the moment. Even when you must take charge of a greater risk in the exposure of your financial contributions. But from the paid accounts you will not achieve this goal. For a balance of 50,000 euros you will only have a small reward of between 10 and 15 euros. To the point that you wonder if it is really important to highlight subscribing to this savings-oriented product. Or it requires another class of banking vehicles to satisfy this demand that all Spanish savers have.

They are easy to hire

However, these types of accounts have in their favor that they are very simple to formalize and do not require in-depth knowledge of them. With various formats depending on the user profile that you present at all times. Accounts for students, freelancers, retirees or civil servants are some of the most relevant that banks have at the moment. You can subscribe them from a single euro and their profitability will start to count from the beginning. Even though, as we have already told you in this post, with an interest rate below historical lows.

As usual do not incorporate commissions nor other expenses in its administration or maintenance. With what your hiring will not cost you anything and at the same time you will be able to obtain credit or debit cards for free. On the other hand, the paid accounts do not have a period of permanence. If not, on the contrary, you can cancel them at the time you consider appropriate. This strategy is very common given the great plurality of proposals that credit institutions have been developing. Where it is quite normal to go from one payment account to another in a short time.

The danger of being in the red

Whatever the case, paid accounts carry a danger and that is that you may be in an overdraft situation. Because in effect, this situation will generate serious penalties that could harm your personal interests. To this end, the red numbers in your checking account balance can lead you to pay more money than you initially thought. Because you cannot forget that staying in the red can pay you dearly. Where for an overdraft of a few euros for a few days you can end up leaving for more than 50 euros. There is an extremely simple reason to understand that explains it: the commissions are higher than the interests.

Whatever the case, payment accounts offer you a mechanism to avoid these unpleasant situations. As an example, through the direct debit of your payroll. Some entities allow you to have an overdraft for the full value of your regular income. From this dynamic, you will not have to pay any commission if you exceed these terms in your checking account balance. Bankinter, through its Payroll Account, enables you to select this solution to your problems. Even with the alternative of contracting a fixed-term deposit with a profitability of up to 5%.

Whatever the case, it is very convenient to have a subscribed payment account because it is a banking vehicle to have access to other types of financial instruments. And if you meet the conditions of the contract, without the need for you to have any cash outlay from now on. With the great utility that you have a wide offer in this class of banking products. As on the other hand, it happens to you in other models offered by financial institutions.

Because finally, you cannot function these days without an account of these characteristics. You will be able to get out of more than one trouble and you will even be sued from some sites to execute payment or credit operations. As an example, formalize the following income statement or receive unemployment benefits, among some of the most relevant operations. Whatever the case, if there is a must-have product, that is undoubtedly the payment accounts. Even though of course he will not rent you many euros as average interest. At least in these moments in which we are living.