What is the lending rate? The creditor rate is the percentage index with which interest is calculated on the amount present on the bank’s current account. When one opens, the bank presents the documentation that concerns the various clauses, specifically naming the creditor rate, so that the client can make an estimate of any interest paid at the end of the year or in any case according to the agreements of the contract, also quarterly or monthly on the current account. The creditor rate has its own economic value, it brings income, a surplus to the current account holder, but we are talking about small and not important figures. In fact, when we talk about current accounts, it is good to know, that the creditor rate indicated by the banks is gross of any expenses and withholdings, which will be counted and then subtracted when the interests will be counted and paid.
Creditor rate with online banks
With the creditor rate at the end of the year it will be possible to quantify the amount of the proceeds from the capital paid into the current account through the bank statement communicated by the bank Generally a bank does not offer an important creditor rate or in any case that can offer current earnings important earnings, they are figures of respect, but far from the gains that can be obtained with other forms of investment. Current accounts opened with online banks offer more satisfactory solutions, also due to the reduction of costs and other expenses and charges, which instead support the classic physical banks. With the economic crisis of recent years, many banks have still lowered the lending rate, but it is equally true, that online banks certainly offer better conditions of advantage, many users despite the more favorable conditions, do not proceed with the opening of the accounts current online, because they are skeptical of online banks, not having full confidence in this kind of virtual system.
Creditor rate applied by the banks
Now that we know what the lending rate is, let’s see how credit institutions behave. The creditor rate applied by the banks fluctuates on 1%, sometimes even less, often the promotions advertised by the various banks do not specify that they treat gross rates or that perhaps it is a promotional lending rate. Online banks, on the other hand, as an Orange Current Account, for example, offer a creditor rate applicable to the amount paid into the current account of 1.20%. Since the current accounts are online, there are no other expenses related to the opening of the account or the management of the same account. Another example is the Conto Mediolanum Freedom, which provides for a 1.50% creditor rate. Fineco expects a 1% lending rate; other less well-known or perhaps less publicized online banks present them with a value of less than 1% and always with zero costs, a condition that facilitates consumers.
Now we know what the lending rate is and what it is worth on average.