Interest rate hike, good news for savers

Postal savings bonds (BFP) are guaranteed by the state, issued by Cassa Depositi e Prestiti (CDP) and distributed by Poste Italiane.

Good news for Italian savers who signed Postal Savings Bonds with them Italian Post.

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In fact, Cassa Depositi e Prestiti is considering raising interest rates on some securities. MilanoFinanza reported the news, which has yet to be confirmed.

Postal savings bonds: Rising interest rates, good news for savers

Dario Scanabico, CEO of Cassa Depositi e Prestiti, appears to be considering the possibility of raising the interest rate on some postal savings bonds.

Already in June there was some news about this that was expecting this choice.

In fact, the new 3×4 and 4×4 postal savings bonds offer really attractive rates. respectively 1% and 1.25% annual total. On the other hand, the 5×5 title, whose investment was up to 25 years and at 1.50%, is gone.

It appears that the interest rate increase could reach 1% or more.

Postage coupons have a low but safe yield and are still guaranteed by the state. Currently follow multi-year text (BTP) coupons.

BTPs have seen an increase in subscriptions in recent months as inflation has risen. As a result, global banks raised interest rates. According to expectations, the European Central Bank should raise it to 0.75% by the end of the year. Please note that the rate is currently 0.50%.

A higher price will also affect postal savings bonds. Therefore, for savers, the choice of BTP or BFP may be indifferent.

In fact, the difference is there even if it is purely technical. For example, the advantage of postal savings bonds is that they can be withdrawn at any time. The investor will still get a 100% refund.

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Instead, BTP investors have to wait for the bond to mature, which, as we know, can also be long. On the other hand, this coupon is always paid for, while the postage coupon is always paid in increments. For example, if the saver sells the security after 8 years, the interest collected will reach the sixth year.