Spanish families have nearly half ? 48.7% to be exact ? of their savings invested in cash deposits, whose yields are all below 1.4% even though the Spanish banks pay around 40% more than banks in other European countries. The divergence has nothing to do with how other countries structure their savings investments.
Falling real estate prices and falling cash deposit yields indicate that savers need to change their strategy. The issue is that Spanish citizens are not happy with the culture of their financial sector, especially after the recent preferential shareholder scandal, and do not trust institutions that fail to take precautions when they are needed most.
