Savings portfolio returns at the end of June 2025: the best alternative to a bank deposit

Savings portfolio returns, as expected

The returns of the savings portfolios have evolved as expected and in line with our previous communications.

These portfolios are designed to replicate central bank interest rates through an optimized selection of money market funds. That is why we communicate that the Yield is variable, meaning it fluctuates as central banks raise or lower their official interest rates. For the euro, this depends on the european central bank (ECB) and for the dollar, on the Federal Reserve of the USA.

In the top chart we show the current (variable) Yields updated as of the end of June 2025. During this 2025, as we’ve been communicating, euro Yields have declined due to cuts in interest rates by the European central bank.

The inbestMe savings portfolio has fulfilled its mission of delivering returns linked to central bank rates (less spreads and fees). As seen in the chart below, a client who started investing in the savings portfolios in EUR and USD as of 06/30/2025 would have accumulated 7.4% or 12.4%.

Important note: past performance is not a guarantee of future results

The annualized returns (APYs) have been 2.8% in euros and 4.6% in dollars. These APYs are obviously above the current Yield because the latter has been decreasing as central banks have lowered interest rates.

The risk-adjusted returns — with Sharpe ratios of 6 in euros and 7 in dollars — are hard to match with other types of portfolios right now.

As shown in the chart above, one of the key features of the savings portfolio is its predictability, meaning the return accumulates in an almost constant manner. Its volatility (see first table) has been close to 0%: specifically, 0.5% for the savings portfolio in euros and 0.7% for the one in dollars.

Looking ahead to 2025, we may continue to see interest rate cuts by central banks. Even so, it is likely that returns will remain positive in the coming months and years. Therefore, the savings portfolio will continue to be one of the most attractive alternatives for both short-term saving and emergency fund management.

Savings Portfolio returns clearly above deposit interest rates

Since its launch, the savings portfolio has consistently outperformed 1-year deposit rates offered by banks (data as of May 2025), and on average, a client would have earned 1.9 percentage points more, accumulating 7.1% (instead of the 5.2% from a typical deposit), as seen in the chart below.

Similar differences are also seen in the USD version.

This difference is also observed in the USD version. See the recent post:

• The FED maintains interest rates, inbestMe’s USD Savings Portfolio, at 4%

Therefore, the inbestMe savings portfolios continue to be an excellent option to make the most of our short-term liquidity or to build an emergency fund. The data shows it will remain one of the best options in terms of returns, and it also maintains several advantages over traditional bank deposits, such as:

• available from €1,000
• no amount limit
• no term, and therefore no early withdrawal penalties
• tax efficient, as taxation is deferred until withdrawal
• transferable to other portfolios within or outside inbestMe (tax-free)
• maximum diversification (equivalent to holding 100 deposits)