The CTS is coming. Where can I deposit it?
Posted: Tue Jan 07, 2025 6:02 am
Although the gap has narrowed, municipal savings banks still pay twice as much interest as banks.
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Municipal savings banks continue to be the financial institutions that offer the highest interest rates for depositing Compensation for Time of Service (CTS), although the difference with banks has been reduced in recent years.
According to official figures from the Superintendency of Banking, Insurance and AFP ( SBS ), these companies currently pay an average interest of 9.4% per year, more than double that of banks (3.7% per year).
But in 2010, the difference was three times as high, since while these offered 11.4% on average, the interest rate of the competition was only 2.9%.
WHY THE DIFFERENCE? The president of the Caja Municipal de Sullana, Joel Siancas, says that they can pay higher interest rates for the CTS because they have a high cost for their loans due to the fact that their operations are directed, above all, to micro-enterprises.
"So we have a higher margin for nepal number screening CTS placements. In addition, we have lower administration costs than banks."
Regarding the drop in interest rates reported in recent years, the executive explained that this is due to the greater liquidity in the market, which means they have more alternatives for raising funds.
LOOK FOR THE MOST PROFITABLE Due to the large difference in interest paid, analysts such as Jorge González Izquierdo recommend migrating CTS accounts to a cash register.
"It should be noted that SBS regulations require a deposit insurance fund (of S/.94 thousand). If the fund goes bankrupt,* the CTS will be guaranteed up to that amount,"* González noted.
Joel Siancas says that the clients of the savings banks have, on average, S/. 5 thousand CTS, so their accounts are largely covered by the insurance fund.
"But it will not be necessary to use it because no problems have been recorded in 25 years," he said.
SIMPLE PROCEDURE The migration process takes a maximum of one week. The worker must contact the new entity and it will give him/her an application form that he/she must submit to his/her employer.
"The exchange can be made at any time, even after the deposit (the deadline is May 15). And from that moment on, they will earn more interest," Siancas emphasizes.
Analyze the market offer. Although banks pay less, they also offer promotions or loans at preferential rates if you entrust them with your CTS.
Image
Municipal savings banks continue to be the financial institutions that offer the highest interest rates for depositing Compensation for Time of Service (CTS), although the difference with banks has been reduced in recent years.
According to official figures from the Superintendency of Banking, Insurance and AFP ( SBS ), these companies currently pay an average interest of 9.4% per year, more than double that of banks (3.7% per year).
But in 2010, the difference was three times as high, since while these offered 11.4% on average, the interest rate of the competition was only 2.9%.
WHY THE DIFFERENCE? The president of the Caja Municipal de Sullana, Joel Siancas, says that they can pay higher interest rates for the CTS because they have a high cost for their loans due to the fact that their operations are directed, above all, to micro-enterprises.
"So we have a higher margin for nepal number screening CTS placements. In addition, we have lower administration costs than banks."
Regarding the drop in interest rates reported in recent years, the executive explained that this is due to the greater liquidity in the market, which means they have more alternatives for raising funds.
LOOK FOR THE MOST PROFITABLE Due to the large difference in interest paid, analysts such as Jorge González Izquierdo recommend migrating CTS accounts to a cash register.
"It should be noted that SBS regulations require a deposit insurance fund (of S/.94 thousand). If the fund goes bankrupt,* the CTS will be guaranteed up to that amount,"* González noted.
Joel Siancas says that the clients of the savings banks have, on average, S/. 5 thousand CTS, so their accounts are largely covered by the insurance fund.
"But it will not be necessary to use it because no problems have been recorded in 25 years," he said.
SIMPLE PROCEDURE The migration process takes a maximum of one week. The worker must contact the new entity and it will give him/her an application form that he/she must submit to his/her employer.
"The exchange can be made at any time, even after the deposit (the deadline is May 15). And from that moment on, they will earn more interest," Siancas emphasizes.
Analyze the market offer. Although banks pay less, they also offer promotions or loans at preferential rates if you entrust them with your CTS.