Savings Account Interest Rates: All You Need to Know Now
New and existing clients should be aware of daily interest rates on income: Here's the essential information.
In the financial landscape, shifts are happening, and savings account interest rates are no exception. Here's what new and existing customers need to be aware of.
Goodbye High Rates for New Customers
Recent studies show that the European Central Bank (ECB) lowering the deposit rate will soon impact savings account interest rates. Banks will now receive only 2 percent instead of 2.25 percent from the ECB. This change will primarily affect new customers who have enjoyed competitive interest rates in the past.
According to a study by Frankfurt data specialists FMHX, new customer offers decrease by a factor of between 0.13 to 0.23 percentage points due to deposit rate cuts. On average, new customers currently receive 2.21 percent, and there's a wide range, with attractive providers offering up to 3.0 percent and the lowest offering just 0.4 percent. Guarantees for these " promotional interest rates" last between two to six months.
Where to Find the Highest Yields?
If you're opening a new savings account, don't expect outrageous returns. However, some banks and fintechs still provide relatively attractive yields on euro deposits. The Bank of Scotland offers the best current rate at 3 percent interest, but it's only guaranteed for two months. A more long-term option is the Volkswagen Bank, which offers 2.4 percent, guaranteed for six months.
Rapid Decline in Promotional Interest Rates
In the long run, customers will likely have to settle for much less. Some banks are already lowering their savings account interest rates for new customers, such as 1822direct, Openbank, Targobank, BMW Bank, and Advanzia, which have lowered their rates by up to 0.7 percent since May 2025.
Existing Customers Not Spared
While interest rates for existing customers have only decreased by 0.33 percentage points since the beginning of the year, they are still expected to decline further. This is because banks can invest their sight deposits (primarily time deposits and balances on checking accounts) with the ECB at two percent, making it profitable for them to carry these funds.
Tips for Saving Successfully
Even though banks may struggle with reduced profit margins, it's expected that they will continue to lower their interest rates for existing customers to boost their margins. To stay informed, you can always check the current interest rates on the FMH website. Customers who prefer fixed-term deposits over time deposits gain planning security but lose flexible access to their savings. This decision should be carefully considered.
The world of savings account interest rates is changing, and it's crucial for customers to stay informed to make the best decisions for their financial future. In an environment of declining rates, it's essential to keep an eye on current offers and adjust strategies accordingly. Make the most of your savings by staying updated and utilising the right opportunities when they arise.
Source: ntv.de
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- In the midst of changing financial landscapes, it's essential for both new and existing community members to pay attention to the evolution of employment policies within banks, particularly those involving employment policies related to personal-finance and saving, as shifts in savings account interest rates may impact their employment opportunities.
- To maintain financial stability and savings growth, individuals may want to explore alternative options for investing their money, such as fintech platforms or savings platforms, as some banks are likely to lower their savings account interest rates due to reductions in deposit rates from the European Central Bank (ECB).
