Spanish banks Santander, BBVA hike deposit rates to 2.75% amid competition

Santander and BBVA raised deposit rates to 2.75% and 2.5% respectively, with Bankinter offering 3% for new savings, signaling intensifying competition for deposits in Spain. This follows a period of low rates and reflects banks' need to retain customer funds as the ECB's tightening cycle matures. The move may pressure net interest margins but could attract inflows, affecting the broader European banking sector.