Investments in term deposits continue to grow due to the high yield they generate with the benchmark passive interest rate, which peaked again on November 6 when it reached 7.52%, the highest since at least January 2015.
It is even above the peak reached in April 2020 when the shutdown began due to the COVID-19 pandemic and was 7.24%.
The latest interest rate report from the Central Bank of Ecuador (BCE) shows that the passive reference continues to rise with a trend to be higher within a year or more.
Interest rates for term savings the highest in Ecuador in the last eight years: these are the institutions that offer them
The given time must be respected, otherwise there are penalties that depend on each financial institution.
The Passive rates are those that banks pay on deposits. They are called passive because the money deposited by the public represents a debt for the financial institution (liability).
The return that will be realized is in accordance with the passive interest rate that existed at the time when the period of the frozen deposit began to run in order to earn the offered after the fulfillment of the agreed.
Reference passive interest rates by terms (6.11.)
| Deadlines | % per year |
|---|---|
| 30-60 days | 6.49 |
| 61-90 days | 6.89 |
| 91-120 days | 7.04 |
| 121-180 days | 7.73 |
| 181-360 days | 7.76 |
| 361 days or more | 9.17 |
Source Central Bank of Ecuador
Time deposits are a financial product through which a sum of money is deposited in a financial institution for a certain period of time in exchange for compensation at a predetermined interest rate. These deposits are made for terms longer than 30 days.
The reference interest rate that banks pay on average for keeping deposits of 361 days or more was 8.75 percent last October. In the national and solidarity economy, it was 9.76%, even some cooperatives paid a yield higher than 13%.
New placements in time deposits reached $6,904.92 million across the financial system last October, according to the latest ECB report, with a total of 228,698 operations.
While in October 2022, it amounted to 5,831.15 million dollars, i.e. a growth of 18.4%.
In addition, they are USD 309.87 million higher than last year in September, when new term deposits totaled USD 6,595.05 million.
The monthly amount of new placements of time deposits in the financial system
| Month | Amount in millions of dollars |
|---|---|
| October/2022 | 5,831.15 |
| November/2022 | 5,515.23 |
| December/2022 | 6,725.86 |
| January/2023 | 7,265.77 |
| February/2023 | 5,724.35 |
| March/2023 | 6,368.63 |
| April/2023 | 6,101.62 |
| May/2023 | 6,556.63 |
| June/2023 | 6,713.62 |
| July/2023 | 6,813.77 |
| August/2023 | 6,906.38 |
| September/2023 | 6,595.05 |
| October/2023 | 6,904.92 |
Source: Central Bank of Ecuador
Source: Eluniverso
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