Where to deposit 20,000 PLN? We calculate and advise.

In times of falling interest rates on savings products, finding a good deal is increasingly difficult. Keeping your finger on the pulse is even more important. In our latest analysis, we examine the best offers from banks and advise you whether to choose a term deposit or a savings account if you have 20,000 PLN on hand.

Although the Monetary Policy Council will meet at the end of August for a non-decision-making meeting, banks are continuing to implement cuts . More institutions have recently focused on lower interest rates for customers. These include Nest Bank, which cut the interest rate on its currently highest-interest deposit, and BOŚ Bank, which lowered rates in its latest promotion for New Funds Deposits.

Not just discounts

There are also exceptions to the rule, which remind us that it's worth staying up-to-date with market developments . These include, for example, the increase in the annual interest rate on the Bank Pekao Savings Account from 6% to 7%, or the introduction of a completely new promotion at Bank Pocztowy for holders of additional funds. New customers can receive a 7% annual interest rate on their Savings Account, provided they meet additional conditions.

Choosing the best offer can be challenging due to the complex terms and conditions that apply to those hoping to generate additional income for their households. Term deposits and savings accounts are often only available to new customers or after depositing new funds. Most banks also require the opening of a personal account, while some rely on active account use by providing income or making debit card payments.

Where to deposit PLN 20,000?

This isn't the only information worth considering before deciding to transfer funds to a specific bank. Sometimes, it's difficult to choose due to varying periods for which better interest rates are calculated. Should you be tempted by a higher rate for a slightly shorter term, or choose a seemingly inferior product with a much longer maturity?

This time, Bankier.pl advises you on which product to choose from a given bank if you have PLN 20,000 in savings. For each institution, we selected the highest-interest term deposit and the highest-interest savings account, and we calculate the final interest rate for the better option.

Deposits are triumphant

Most banks offer better terms on term deposits, as many as thirteen out of just over 20 institutions . The highest interest rate is currently available on the Nest Deposit. Welcome to Nest Bank . This six-month deposit offers 7.10% annual interest, which translates to nearly PLN 580 in interest. This deposit option is available to new customers who open a personal account and are active current account users. This requirement includes maintaining a steady income stream.

VeloBank offers a slightly lower interest rate of 7.00% per annum, also on a six-month deposit. The additional terms are identical to the offer described above. This deposit will benefit new customers opening a personal account who remember to fund their account with fixed amounts. The interest accrued on this deposit after six months will amount to just over PLN 570.

The table also includes two other term deposit offers at 6.50% per annum: the Welcome Deposit from Credit Agricole and the Plus Deposit at Volkswagen Bank GmbH Sp. z o.o. Branch in Poland. The latter offers higher interest rates due to the option of depositing funds for a very long term – 9 months. By choosing this offer, you can receive nearly 790 PLN in interest over that period.

Capitalized savings accounts

The scales, however, lean toward savings accounts, with profits at eight banks. All of these institutions offer “winning” rates as part of special promotions. The highest percentages can be found at three of them: Bank Pekao, Bank Pocztowy, and VeloBank.

Bank Pekao and Bank Pocztowy are institutions that have recently introduced a 7% annual interest rate. Both accounts have additional terms and conditions and a relatively low maximum amount covered by the stated interest rate. Bank Pekao's offer is PLN 25,000, while Bank Pocztowy's is PLN 20,000. To take advantage of the offer, you must open a personal account. At Bank Pekao, the stated rate is valid for a slightly longer period, four months. During this time, you can earn approximately PLN 380 in interest.

VeloBank offers 7% per annum for amounts of PLN 50,000. Any excess is subject to a 6% annual rate. To maintain the interest rate for three months, customers must remember to make payments by card or BLIK. VeloBank is the only institution offering 7% per annum on both its term deposit and savings account products .

The largest difference between the rates in the analyzed offers is found among banks that offer promotional interest rates on only one selected product . This is the case, for example, at Bank Pekao, Bank Pocztowy, Credit Agricole, and Santander Bank Polska. In the case of Credit Agricole, the difference is as much as 5.73 percentage points. The interest rate on the Welcome Deposit is 6.50% per annum, while the Savings Account is only 0.87% per annum.

Read the terms and conditions of the offers

When choosing a savings product, it's worth remembering the specific features that describe each one. Additional terms and conditions imposed by a given bank are one thing, but the ability to make additional payments or withdraw funds early is another. A term deposit is established for a predetermined period, and in the overwhelming majority of cases, withdrawing funds before that period expires results in a 0% interest rate. A deposit agreement is also concluded for a fixed term.

With a savings account, customers gain the freedom to manage their funds. Top-ups and withdrawals are permitted. This can be a good solution for those constantly accumulating additional capital, but a bit more challenging for those who can't resist extra spending. A savings account agreement is usually signed for an indefinite period, and the applicable rate is variable. Promotional interest accounts are an exception, as they provide certainty that the stated rate will be valid for the given period.

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