Fixed-term deposits in Spain in 2026: bank rates, Letras del Tesoro and tax on interest

Fixed-term deposits in Spain pay around 2% a year in October 2026: according to the ECB, new household deposits of up to one year were placed at 2.01% in August. Promotional rates of 2.5–3.1% apply only to amounts up to €50,000. A tax resident pays 19–30% on the interest, and the bank withholds 19% at source.

This article is about where to keep spare euros in Spain: a fixed-term deposit, an interest-bearing account, Spanish Treasury bills (Letras del Tesoro) and government bonds, and money market funds. How to choose a bank and open an account is covered in “How to open a bank account in Spain”, and accounts and brokers outside Spain in “A foreign bank account”. Here you will find rates as of 24 October 2026, the tax on interest for residents and non-residents, the deposit guarantee, and worked figures for amounts from €300,000 to €1,000,000.

Types of deposits in Spain

Spanish banks offer two main savings products.

• Fixed-term deposit (depósito a plazo fijo). The money stays put for a fixed term — 3, 6, 12 or 24 months — at a rate known in advance. Early withdrawal is usually possible, but the rate then drops: ING, for example, pays 0.87% APR (TAE) for the days before cancellation instead of 3%.
• Interest-bearing account (cuenta remunerada). An ordinary account on whose balance the bank pays interest. The money is available any day, but the higher rate is usually guaranteed for only a few months.

Deposit terms show two figures. TIN (tipo de interés nominal) is the nominal rate used to calculate interest. TAE (tasa anual equivalente) is the annual yield taking into account how often interest is paid; deposits from different banks should be compared by TAE. The term, rate and early-withdrawal conditions are set out in the terms document the bank provides before you sign.

For large capital this matters: high-rate offers are usually capped — often at €50,000 — and are available to new clients or for “new money”. On €500,000 such a rate covers a tenth of the sum.

Deposit rates in Spain in October 2026

Deposit rates follow the European Central Bank rate. The ECB raised its deposit facility rate from 2.00% to 2.25% on 17 June 2026 and to 2.50% on 16 September 2026 (ECB data). The average rate on new household fixed-term deposits in Spain of up to one year, according to ECB statistics, rose in step: 1.87% in May, 1.93% in June, 2.02% in July and 2.01% in August 2026.

Below are terms taken from the banks’ official pages on 24 October 2026. These are examples of promotional offers, not a ranking or a recommendation: terms change often and should be checked on the day you open the deposit.

The promotional rate is 0.5–1.1 percentage points above the average, but it applies to a limited amount and a short term. One-year Letras give a comparable yield with no cap on the amount. Check the terms of other banks, including the largest ones, on their websites and in the deposit terms document.

Explanations on deposits, accounts and customer rights are published on the Banco de España bank customer portal.

Tax on deposit interest in Spain

For a Spanish tax resident, interest on a deposit or account is income from capital: the law expressly names remuneration on accounts “in all kinds of financial institutions” (Law 35/2006 on IRPF, article 25.2). It goes into the savings tax base (base del ahorro) — together with dividends and gains on the sale of shares. Who counts as a resident is explained in “Spanish tax residency”.

A Spanish bank withholds 19% as soon as it pays interest (IRPF Regulation, Royal Decree 439/2007, article 90.1). This is an advance, not the final tax. In the annual return (modelo 100) interest is added to dividends and gains on securities, tax is calculated on the scale, and the amount withheld is deducted. If capital income exceeds €6,000, there will be more to pay.

People moving to Spain often ask about a “tax-free allowance” on interest. There is none: tax is due from the first euro. There is a filing threshold: if capital income subject to withholding is no more than €1,600 a year and income from Letras no more than €1,000, you may not need to file a return (article 96.2 of the IRPF law). If you have other income, you file, and the interest is reported in the return.

Deposits in banks outside Spain

A Spanish tax resident pays tax on interest from deposits in any country on the same scale; a foreign bank does not withhold Spanish tax. If foreign accounts total more than €50,000, they must be reported in an information return — see “Modelo 720 and 721” for details. Tax withheld by another country is credited under the rules of the double tax treaty with that country.

Beckham Law

Under the Beckham Law regime, interest from a Spanish bank is taxed on the same 19–30% scale (article 93.2.e of the IRPF law), while interest on deposits abroad is not taxed in Spain at all, and a person under the regime does not file modelo 720. For the duration of the regime, Spanish tax on interest depends on the country where the bank is located; tax in the bank’s country is assessed separately.

Non-residents of Spain

Anyone who has not become a tax resident pays non-resident income tax (IRNR, Royal Legislative Decree 5/2004):

• the general rate on interest is 19% (article 25.1.f);
• residents of other EU and EEA countries pay no tax on interest at all (article 14.1.c), unless the income flows through a tax haven;
• interest on non-resident accounts (cuentas de no residentes) is exempt for all non-residents (article 14.1.f) — the bank will ask you to confirm non-resident status;
• income from Spanish government debt — Letras, bonos, obligaciones — is exempt for any non-resident without a permanent establishment in Spain (article 14.1.d).

Other non-resident taxes — on property, rental income and sales — are covered in “Non-resident taxes in Spain”.

Deposit guarantee: €100,000 per bank

Deposits in Spanish banks are protected by the Deposit Guarantee Fund (Fondo de Garantía de Depósitos, FGD). If a bank fails, it repays up to €100,000 per depositor (Royal Decree-Law 16/2011, article 10.1). The details are in Royal Decree 2606/1996:

• the limit applies per depositor per bank, across all their deposits and accounts combined, including accrued interest (article 7, paragraphs 1 and 4);
• a joint account is split between the holders — as set out in the contract or, if the contract is silent, equally; spouses with a joint account are covered up to €200,000 (article 7.5);
• payment is made within seven working days (article 9.1);
• securities held by the bank for the client are protected separately, also up to €100,000 (article 7 bis).

There is an exception that is useful in property transactions. Money from the sale of your home, as well as money received in connection with marriage, divorce, retirement, dismissal, disability or death, is protected without limit for three months after it is credited (article 10.1 of Royal Decree-Law 16/2011). If you sell a flat for €900,000, you have three months to spread the money across banks or buy a new home.

The FGD protects deposits at banks with a Spanish licence. How the guarantee differs at neobanks with a Spanish IBAN is explained in “How to open a bank account in Spain”.

Letras del Tesoro and Spanish government bonds

Letras del Tesoro are short-term Spanish government debt securities with terms of 3, 6, 9 and 12 months. They pay no interest: a Letra with a face value of €1,000 is bought at a discount, and €1,000 is received at maturity; the difference is the return (Tesoro Público). The minimum bid is €1,000, and amounts above that go in multiples of €1,000. The securities are issued at auctions; the October 2026 results:

Longer-dated debt — bonos and obligaciones del Estado — pays an annual coupon. At the latest auctions, 5-year bonds yielded 3.482% and 10-year obligaciones 4.176% (Tesoro Público as of 24 Oct 2026).

There are two ways to buy Letras. A Spanish resident opens a cuenta directa at the Banco de España and bids through the Tesoro website with an electronic signature or at a branch by appointment; there are no fees. A non-resident can buy only through a bank or broker — Tesoro Público says so explicitly. The bank may charge fees for purchase and custody — check its tariffs and deduct them from the yield.

For a resident the tax is the same savings scale of 19–30%, and the income arises at maturity or sale. The bank does not withhold tax on Letras (article 75.3 of the IRPF Regulation), so the full amount is paid in the return for the year of maturity. A non-resident pays no tax on Spanish government debt (article 14.1.d of the non-resident income tax law). The FGD guarantee does not cover Letras: the debtor is the state itself.

Money market funds

A money market fund (fondo monetario) invests in short-term securities and deposits; its return depends on money market rates, is not guaranteed and is reduced by the management company’s fee. Tax is not paid every year but on redemption of units — on the gain, on the savings scale; the management company withholds 19% (article 75.1.d of the IRPF Regulation). Moving money from one fund to another (traspaso) does not trigger tax (article 94 of the IRPF law); this rule does not apply to ETFs. More on this and other capital income in “Taxes in Spain for the wealthy”.

Example: €300,000 and €1,000,000 in deposits and Letras

The deposits and Letras are held in the name of one Spanish tax resident with no other capital income in the year. For the calculation we take the average rate on new deposits of 2.01% and 12-month Letras at the average price of the 6 October 2026 auction — €970.57 per Letra with a face value of €1,000. We do not use promotional rates: they barely apply to sums of this size.

1. €300,000 in deposits. Interest: 300,000 × 2.01% = €6,030. Tax: 6,000 × 19% + 30 × 21% = 1,140 + 6.30 = €1,146.30. The bank has already withheld 6,030 × 19% = €1,145.70, leaving €0.60 to pay in the return. Net: €4,883.70.
2. €1,000,000 in deposits. Interest: €20,100. Tax: 1,140 + 14,100 × 21% = 1,140 + 2,961 = €4,101. Withheld €3,819, balance due €282. Net: €15,999.
3. 1,000 Letras for 12 months. Purchase: 1,000 × 970.57 = €970,570. At maturity on 8 October 2027 you receive €1,000,000, income €29,430, or 3.03% on the money invested. Tax: 1,140 + 23,430 × 21% = 1,140 + 4,920.30 = €6,060.30; nothing is withheld, the full amount is paid in the return for 2027. Net: €23,369.70.
4. Half and half: €500,000 in deposits and 500 Letras. Interest of €10,050 plus income from Letras of 1,000 × 500 − 485,285 = €14,715, a total of €24,765. Tax: 1,140 + 18,765 × 21% = 1,140 + 3,940.65 = €5,080.65, or 20.5% of the income. The bank withholds €1,909.50, and €3,171.15 is due in the return. Net: €19,684.35. For simplicity, the calculation assumes both incomes fall in the same year.

Of €1,000,000 in a single bank, the FGD protects only €100,000: full coverage requires ten banks for one holder, or five with spouses’ joint accounts.

Deposits, wealth tax and inheritance

Deposits are included in the wealth tax base (Impuesto sobre el Patrimonio). They are valued at the balance on 31 December or, if the average balance for the fourth quarter was higher, at the average (Law 19/1991, article 12). Withdrawing money in the last days of December does not help: the quarterly average goes into the base. The exception is money spent on buying assets or repaying debt: it is excluded from the average balance, and the assets bought are included in the base in their own right. Whether any tax is payable depends on your total wealth and region — regional thresholds and reliefs are covered in “Taxes in Spain for the wealthy”, and a general overview in “Taxes in Spain”.

Money in a deposit passes to the heirs along with the rest of the estate and is subject to inheritance tax. Regional reliefs and the rules for non-residents are in “Inheritance and gift tax in Spain”. If capital is held through a company, the company’s deposits are taxed differently — see “Holding company in Spain”.

What to do before and after the move

1. The year of the move. Residency is determined by calendar year: interest for the year in which you become resident is taxed in Spain. It is worth matching the terms of deposits in other countries to your moving date.
2. Every year. Interest goes in modelo 100, and foreign accounts over €50,000 in modelo 720.

If your capital exceeds a million and part of it sits in banks in different countries, it is best to work out the sequence of steps before and after the move at a consultation before the first transfer: the tax on interest in your first year of residency depends on it.

Frequently asked questions

What are deposit interest rates in Spain in 2026?

Around 2% a year on average: new household deposits of up to one year were placed at 2.01% in August 2026 (ECB). Promotional offers on 24 October 2026 range from 2.55% to 3.10% TAE, usually up to €50,000 and for new clients. 12-month Letras yielded 2.999% on 6 October 2026.

Do I have to pay tax on interest if the bank has already withheld 19%?

The 19% withheld is an advance. In the return, capital income is taxed on the 19–30% scale and the amount withheld is deducted; if it exceeds €6,000 a year, there will be more to pay. You can skip the return only if such income is no more than €1,600 and you have no other income.

Do I have to declare interest on a deposit abroad in Spain?

Yes, if you are a Spanish tax resident. Interest on deposits in any country is taxed in Spain on the 19–30% scale, and a foreign bank does not withhold Spanish tax. If your foreign accounts total more than €50,000, they must also be reported in modelo 720.

How much does the state guarantee if a bank fails?

The Deposit Guarantee Fund repays up to €100,000 per depositor per bank, including accrued interest, within seven working days. A joint account is split between the holders. Money from the sale of your home is protected without limit for three months after it is credited.

How are deposits taxed under the Beckham Law?

Interest from a Spanish bank is taxed on the 19–30% scale, as for an ordinary resident. Interest on deposits abroad is not taxed in Spain, and modelo 720 is not filed under the regime. There may still be tax in the bank’s country.

Can a non-resident buy Letras del Tesoro, and do they pay tax?

Yes, but only through a bank or broker: only Spanish residents can buy directly from the Banco de España. A non-resident’s income from Spanish government debt is exempt from tax.

Key points about fixed-term deposits in Spain

• The average rate on new deposits is around 2% (2.01% in August 2026); promotional rates of 2.5–3.1% apply to amounts up to €50,000.
• 12-month Letras yielded 2.999% (6 October 2026) with no cap on the amount; tax is paid in the return.
• A resident pays 19–30% on interest, and the bank withholds 19%; foreign deposits are taxed the same way.
• An EU non-resident pays no tax on interest; a non-EU non-resident pays 19%, except on a non-resident account and government debt.
• The FGD guarantee is €100,000 per depositor per bank; a large sum is spread across several banks.