Keeping your money in a standard savings account in Spain means watching its value slip away each year. Inflation runs at nearly 3%, while interest rates barely reach 1.5%. So your savings struggle to keep up with rising costs. If you want a savings strategy that protects your purchasing power and offers predictable income, fixed income investments could be the answer. Let’s explore why now is the moment to rethink how you secure your financial future in Spain.
Understanding Inflation’s Impact
If you’re one of the many expats living in Spain, chances are you’ve worked hard to build a comfortable financial cushion for your retirement. But if you’ve been keeping money in a regular savings bank account, you might be surprised (or alarmed) at what’s really happening to the value of your money. With inflation remaining stubbornly high and savings account interest rates lagging behind, leaving your money sitting in the bank could mean it’s slowly losing value.
According to Spain’s National Statistics Institute (INE), inflation currently stands at 2.7% (August 2025), after peaking at 10.8% in July 2022. This means prices for everyday goods and services are rising almost 3% annually. Meanwhile, the average savings account interest rate in Spain is well below the inflation rate. Most accounts pay between just 0.1% and 1.5%. In the UK, savings rates are a bit higher, but often no more than 3-4.8%. However, the higher interest accounts often come with catches and limitations.
This means for many expats, their savings are not keeping pace with the rising cost of living. This over time, leads to an erosion of purchasing power. You may think you’re not losing the money itself, but what it will be able to buy in the future is reducing over time. This is the hidden cost most savers don’t realise until later.
For retirees and savers, this presents a clear challenge. How do you make your money work harder for you whilst ensuring it doesn’t lose value over time? And without exposing it to the volatility of stock markets?
The Hidden Cost of Low Savings Rates
Many expats understandably choose to keep a significant portion of their wealth in traditional savings accounts for convenience and security. However, when inflation consistently outpaces interest rates, the real value of that money diminishes year after year.
For example, if you have €100,000 in a Spanish savings account earning 1.5% interest and inflation is 3%. Your real purchasing power is effectively shrinking by nearly €1,500 a year. Over a decade, this can add up to a significant loss, thousands of euros in real value.
Market Volatility Is Adding to the Uncertainty
At the same time, global markets have become increasingly unpredictable. Geopolitical tensions, changing trade policies, and fluctuating energy prices are creating headwinds for traditional investments. Many retirees, especially those relying on pensions and long-term investments, have experienced sudden loses during market corrections.
For foreign residents living in Spain, whose pensions are in pounds for example, and converted to euros, currency fluctuations can further complicate matters. This makes income streams less predictable.
Under these conditions, it makes sense to look for stable alternatives with high returns that are not tied to volatile markets or dependent on low-interest savings accounts.
A Smarter Solution: Fixed Income Investments
This is where Castle Rock International Law & Investments offers a compelling alternative. We provide a unique fixed return investment that combines high, reliable returns, fixed quarterly income and robust capital protection. An ideal option for retirees who want to secure their financial future without taking unnecessary risks.
Key Benefits of Our Fixed Income Investment
✅ 11% Fixed Annual Return – On investments over £100,000 (9.5% for investments under £100,000). Significantly outperforming savings accounts.
✅ Returns Paid Quarterly – Receive regular income every three months. Giving you predictable cash flow for daily living or reinvestment.
✅ 24-Month Investment Term – A manageable timeline with the option to renew. Providing flexibility.
✅ Your Capital Returned in Full – 100% of your original investment is repaid at the end of the term.
✅ Insurance-Backed Guarantee – Your capital is protected by a comprehensive insurance bond for peace of mind.
Unlike stock market-linked products, this investment is not exposed to market volatility. Whether equities rise or fall, your returns remain stable and predictable.
Ideal for Retirees, Cautious Investors and Portfolio Diversification
This investment solution is particularly attractive for retirees who rely on their savings for income. Rather than watching your nest egg gradually shrink due to inflation or market downturns, you can generate a steady, predictable income. Income that keeps pace with the cost of living whilst still having access to regular cash flow.
It’s also a great option for those who may be nervous about the ups and downs of traditional investment products. But still want their capital to work harder than it would in a bank account.
And for those investors whose portfolio is predominantly linked to marketed behaviors, adding a fixed return investment to your portfolio provides an element of security and predictability.
Why Work With Castle Rock International Law & Investments
As independent financial advisors, we are not tied to any single product provider. This independence allows us to source the best opportunities worldwide, focusing on quality, security, and performance.
We specialize in working with expats in Spain, understanding the unique challenges of managing wealth across borders, currencies, and tax jurisdictions. Our clients trust us because we combine strong financial expertise with a deep understanding of the expat challenges and retirement goals.
Our clients have a long history with our fixed return investment.
“Bryan and Trish managed my father’s pension 10 years ago along with his investments with them. Unfortunately, my father died suddenly in June 2021. Bryan and Trish arranged all the legal work to transfer the investments into my name. Since that point, all my quarterly payments have been paid on time and on the two year anniversary of the investment, I was able to remove a large lump sum. I have since renewed the investment twice.” – Abi, UK
Secure Your Financial Future Today
The reality is clear: keeping your money in a low-interest savings account in Spain means losing purchasing power every year. With inflation still high and markets volatile, now is the time to explore smarter, more secure investment options.
Our fixed income investment solution offers a rare combination of high returns, capital protection, and regular income. This makes it a powerful tool for securing your financial future.
If you would like to learn more about this opportunity, don’t hesitate to contact us today.
Sources: Instituo Nacional de Estadistica España, tradingeconomics.com, Reuters, Moneyweek