Caja Madrid: Barrilete Cósmico
Category: Financial Products and Services
Country where program ran: Spain
Date program started/ended: 15th September 2008 - 2nd February 2009
Product Description: Caja Madrid, one of the most important Savings Bank in Spain, launches a new deposit with the highest interest rate in the market. It offers an interest rate of 6.5% APR and 1 year's interest in advance.
Advertiser/Client Name: Caja Madrid
Media Channels: Direct Mail
The economic context at the moment of the launching of the product - high interest rates and, above all, the urge for the banks to attract funds due to the lack of liquidity - favored the escalation of the deposits war among financial institutions. This liability war provoked very high yields for saving products such as the deposits (from 2.55% in 2003 to 4.35% in October 2007). The war has turned the deposit into a bait in the campaign for pension plans, instead of the typical tableware set or the plasma TV of previous years. We are facing a situation in which the client's good choice might mean getting double the yield, depending on the product. The deposit launched by Caja Madrid offered the highest interest rate in the market. It offers an interest rate of 6.5% APR and 1 year's interest in advance; an unbeatable offer to match by the competitors.