Savings Account Interest Rates: Over Half of European Banks Neglect to Reward Savers
Financial Institutions Examine Plumbing Systems of 52 Establishments
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With the European Central Bank (ECB) expected to once again lower the deposit rate today, savings account interest rates have plummeted in recent weeks. However, the trend of decreasing interest rates on fixed-term deposits has shown signs of slowing.
A recent evaluation by the comparison portal Verivox reveals that over 50 banks within Europe fail to offer a reasonable interest rate on savings accounts, leaving depositors virtually unremunerated. This corresponds to roughly 7% of the 786 credit institutions assessed by Verivox. Among these zero-interest banks, eight do not even offer interest for deposits of €10,000 upwards, only for balances above specified thresholds of €15,000, €25,000, or €50,000. Meanwhile, two institutions restrict interest to balances below €10,000.
Zero and low-interest rates don't have to render savings account holders powerless. By shopping around and switching providers, they can still find attractive interest rates in the current market. German banks currently offer up to 2.5% interest on savings accounts, rates that aren't exclusive to new customers but available to all account holders.
High-Interest Savings Accounts Across Europe
While many banks in Europe offer a dismal savings account interest rate, a select few excel in providing competitive rates. Flexible savings accounts with as much as 4% interest are offered by trade republic and scalable capital, with maximum deposit limits of €50,000 and €100,000 respectively. Other notable digital banks include Freedom24, which offers up to 8% on its fixed-term deposits with a minimum deposit of €1,000, and Freedom24 USD, boasting a 5.31% interest rate based on SOFR for deposits starting at $150.
In Spain, Banca March and Santander stand out as prominent banks for high-yield savings accounts, whereas in Ireland, Barclays and in Italy, Banca Sistema are recognized for their generous interest rates. For Belgian savers, the Ritme account by vdk bank yields 2.85% interest, albeit imposing a deposit limit of €500 per month.
Summary of Representative Interest Rates in Europe (2025)
| Bank/Institution | Interest Rate | Account Type | Notes/Conditions ||-----------------------|--------------------------|-------------------|----------------------------------------------|| Freedom24 | Up to 8% | Fixed-term | Min deposit €1,000 || Trade Republic | 4% | Flexible | Max €50,000 || Scalable Capital | 4% | Flexible | Max €100,000 || Freedom24 USD | 5.31% (SOFR) | Flexible | Min deposit $150 || Banca March (Spain) | Competitive high yield | Savings account | Country-specific terms || Santander (Spain) | Competitive high yield | Savings account | Country-specific terms || Barclays (Ireland) | Higher tiers 0%-2.88% | Tiered savings | 0% interest up to €99,999 || Banca Sistema (Italy) | Competitive high yield | Savings account | Country-specific terms || vdk bank (Belgium) | 2.85% | Ritme account | Deposit limit €500/month |
Interest rates for savings accounts vary significantly across Europe, dependent upon bank policies, account type (fixed-term vs. flexible), and deposit size. New, digital-focused banks or investment-linked savings accounts typically provide higher rates, while traditional banks tend to offer minimal interest on smaller balances.
In summary, for competitive high-interest savings accounts in Europe, Freedom24, Trade Republic, and Scalable Capital are worth considering, while traditional banks like Barclays may offer little interest, particularly for smaller deposits. It is essential to compare interest rates from multiple institutions to maximize returns on savings accounts.
- ECB
- Interest Rates
- Inflation
- Money Management
- Wealth
- Savings Accounts
- Fixed-Term Deposits
- To maximize returns on savings, it's crucial to compare interest rates from various banks and digital institutions, such as Freedom24, Trade Republic, and Scalable Capital, which offer competitive high-interest rates.
- The employment policy of banks can play a significant role in personal-finance and business, as institutions like Freedom24, Trade Republic, and Scalable Capital often prioritize digitally-focused strategies, which may influence their competitive high-interest savings account offerings.
