Investment firms are back on track after limiting deposit yields to 1.75%. In May alone net contributions to these funds rose by 2 billion euros, 1.5% more than in April. So far this year the total amount of investments in deposits have risen 8.8%, which is a similar rate to the same period in 2004.
This is a good change of pace for banks, whose margins and profits are improving thanks to management fees. The profits are also trickling down to clients. Thanks to competition among banks, clients are receiving up to 8% discounts to move their assets to competitors.
The deposit funds have also been successful because investors are safe from tax increases, a benefit that may not last through the government's next tax reform.
