"Finanztest": Savings interest rates persist in decreasing
In the latest edition (7/2024), financial magazine "Finanztest" reports: The interest rates on popular savings products keep slightly decreasing. As of now, no savings product offers a rate of 4% or more, neither for day-to-day nor fixed deposits, despite the recent ECB interest rate cut.
German provider Trade Republic stands out with its day savings account offering an annual interest rate of 3.75%. Following closely are Distingo Bank from France and Alisa Bank from Finland, each providing 3.31% annual interest. A month ago, 4% per year was the best offer.
For long-term savings, a fixed deposit might be a better choice. As of early June, the highest yield was 3.60% per year, offered by the German IG Bank for one-year fixed deposits (minimum deposit: €2500). Klarna Bank from Sweden offered the next best rate of 3.51% per year. The competition for rates up to 3.50% was stiffer four weeks ago.
Competition for three- and five-year fixed deposits has dropped a bit more significantly. At a three-year term, depositors could expect a maximum interest rate of 3.50% from the Dutch Leaseplan Bank at the start of June. The German Aareal Bank offered the same rate for five-year fixed deposits (minimum deposit: €1000). A month ago, there were still 3.75% interest rates for three-year fixed deposits and 3.60% for five-year fixed deposits.
"Finanztest" only considers banks from EU states, the European Economic Area, and Great Britain in its monthly interest rate comparison, provided that the banks are highly rated by credit agencies. The deposit insurance of these countries is considered stable enough by the testers for prompt compensation of depositors in case of larger bank bankruptcy.
