Daily Interest Rates on Day-to-Day Income: Essential Information for New and Ongoing Customers
Ever since banks started earning less from the European Central Bank (ECB), it's inevitable that they'll pass this small loss on to their customers. Now that the ECB has just lowered the deposit rate (for the eighth time), it's only a matter of when savings account interest rates will follow suit.
Initially, the change will have a more significant impact on new customers who have recently benefited from limited-time promotional offers. As per a recent study by data specialists FMHX, these offers are likely to drop by 0.13 to 0.23 percentage points when interest rates decrease. On average, new customers currently receive 2.21% interest. The top providers dish out up to 3.0%, while the lowest offer 0.4%. The guarantee period for these "promotional interest rates" lasts between two to six months.
Highest Savings Account Interest Rates
Given the current market situation, don't expect exceptional yields if you open a new savings account. At present, the best offer comes from the Bank of Scotland with a 3% interest rate for two months. Since further ECB adjustments to the deposit rate are likely in the near future, it might be smarter to settle for a lower interest rate if the bank offers longer security for your investment.
An intriguing alternative is Volkswagen Bank's offer, which guarantees 2.4% interest over six months. If you invest €50,000 at the Bank of Scotland, you'd generate €513 in interest within half a year (the first two months with a guaranteed 3% interest, and the subsequent earnings depend on existing customer rates). With the Volkswagen Bank offer, you'd earn €675 over the same period.
Evolving Interest Rates for Savings Accounts
In the upcoming months, new customers may have to prepare for much lower yields. Even though some banks don't immediately pass on interest rate cuts to their customers, others do—and some even take it a step further by reducing their savings account interest rates for new customers by as much as 0.25%. For instance, 1822direkt, Openbank, Targobank, BMW Bank, and Advanzia have already lowered their savings account interest rates by 0.25% since May 2025. In an extreme case, the abcbank has reduced its interest rate from 2.20% to a mere 1.50%.
Interest Rates for Existing Customers
While the interest rates for existing customers have decreased slower compared to new customers (dropping by 0.33 percentage points since the beginning of the year), they will likely continue to drop in the coming weeks. Despite the significant ECB interest rate cuts, existing customers' interest rates have only gone down to an average of 0.86%. One reason is that banks can still make good money by investing their sight deposits (overnight deposits and balances on checking accounts) at the ECB, which pays 2%. With an average of 0.86% interest, the ECB disperses an impressive €281 million every day due to an interest rate differential of 1.14%.
Strategies to Save Successfully
Given the continuous lowering of interest rates for existing customers, it's essential to keep track of the current rates on the FMHX website. Fixed-term deposits offer planning security but decrease flexibility in accessing your savings. Carefully consider this decision before making it.
Max Herbst, the owner of independent financial consulting firm FMH, has been providing independent interest rate information since 1986.
Major Themes:* Financial Industry* Interest Rates* European Union* Investments* Banking
(Enrichment Data Integrated: High-yield options in Europe include fintechs and certain banks offering rates between 2% and 2.69% AER for various customer types. The ECB's decision to lower the deposit rate is part of a broader response to economic conditions in the eurozone, aiming to maintain controlled inflation close to the ECB's target of 2%.)
- The evolving savings account interest rates, influenced by the ECB's deposit rate adjustments, might necessitate a review of the community policy regarding personal-finance and saving for new customers, as they might have to prepare for much lower yields.
- As banks continually adapt their employment policy to accommodate changing interest rates, existing customers could potentially benefit from strategies like monitoring current savings account interest rates on financial websites like FMHX, even as fixed-term deposits maintain planning security but decrease flexibility in accessing savings.
