Secure Investments with Up to 20% Returns: Which One is Best – BTP Valore, Deposit Account, or Buono Fruttifero?

Investing in Italy: A Comparison of BTP Valore, Postal Fruttifero, and Deposit Account

Italian investors are always on the lookout for secure and profitable investments.
In the current period, products that yield up to 20% over 6 years can be found, under certain conditions.
But which option is more favorable among BTP Valore, Deposit Account, and Fruttifero Bond?

BTP Valore

BTP Valore represents a solid medium to long-term investment opportunity for individual small savers.
First announced by the Ministry of Economy and Finance in May 2023, these BTPs are exclusively available for the retail market.
Initial BTP Valore issuances took place in June 2023 with a duration of four years, followed by additional issuances including a five-year bond in October 2028 and a six-year bond in March 2030.

Compared to traditional BTPs, BTP Valore offers increasing coupons calculated on fixed rates that rise over the life of the bond, along with a final loyalty bonus for investors who hold the bond until maturity.

For example, the recent BTP Valore issued in May 2030 offers an initial yield of 3.35% for the first three years and 3.9% for the following three years, culminating in a total net yield at maturity of 19.72%, including a loyalty bonus of 0.8%.
Despite slightly lower yields compared to previous issuances, they remain an attractive choice for investors seeking stability and competitive long-term returns.

Fruttifero Postal Bonds

Postal Fruttifero Bonds are a popular choice among investors looking for secure and reliable savings instruments.
Functioning as a loan to the State through the Cassa Depositi e Prestiti, these bonds can be subscribed at any post office.
Returns are subject to a 12.50% tax, similar to Government Bonds, and a 0.2% stamp duty on the capital for total values exceeding 5,000 euros.

Among these, the 4-Year Plus Bond offers a net return at maturity of 7.213%, while some Bonds offer even more attractive returns, such as the Renew 4 Bond and the Legacy Solution Bond.

Deposit Account

Among secure investments, deposit accounts remain an interesting option for investors looking to leverage current official credit rates.
Despite adjustments due to the ECB’s rate cuts, some offer competitive returns to counter the competition from BTPs and postal bonds.

For example, Banca Progetto offers a locked deposit account with a gross yield of 4.40% over 4 years, guaranteeing a total net return of 12.22% at maturity.
Unlocked accounts for 5 years provide a gross annual rate of 4.50%, allowing a total net return of 15.65% at the end of the period.

Conclusion

Choosing between BTP Valore, Postal Fruttifero Bonds, and Deposit Accounts requires a careful evaluation.
BTP Valore offers attractive and increasing returns over time but carries higher risk in case of early sale.
Postal Fruttifero Bonds guarantee reimbursement at face value, reducing risk considerably.
Deposit accounts can provide competitive returns, but early closure penalties and a higher tax rate on interests must be considered.

The final decision depends on investors’ preferences, time horizon, and risk tolerance.
For safety, Postal Fruttifero Bonds are suitable, while those willing to take more risks may consider BTP Valore or Deposit Accounts, evaluating potential returns and risk exposure carefully.