Before ECB interest rate decision: Four percent on call money: Interest rates at banks are rising

As European Central Bank (ECB) prepares to make a decision on interest rates, savings accounts are experiencing a surge in interest rates across multiple banks. At least eleven banks currently offer over 3.5% interest rates for new daily deposit accounts, according to an analysis conducted by the comparison portal Verivox. The study, which analyzed interest rates of over 800 banks and savings institutions, indicates that the competition among banks to attract new depositors is intensifying.

Revolut, a digital bank, provides the highest daily deposit rate of 4.25% for up to four months, subject to certain conditions. Other banks such as Renault Bank and Chase, a subsidiary of US giant J.P. Morgan, offer 4.1% and 4% interest rates for four months respectively. The Dutch bank Ayvens also offers 4% interest, but only for three months. Foreign banks are vying for a share of the market, driven by high capital market yields and the prospect of higher interest rates set by the ECB.

While digital banks and foreign banks are intensifying the competition for depositors, many daily deposit offers come with fine print, stating that the interest rates significantly decrease after the initial months, forcing depositors to switch banks to continue earning lucrative returns. Oliver Maier, Managing Director of Verivox Financial Comparison GmbH, advises savings account holders to keep an eye on the standing interest rates instead of solely focusing on the initial offers.

Unlike new depositors, standing deposit rates have only slightly increased, with June figures standing at 1.33% nationwide, now averaging 1.4%. Interest rates on fixed deposits, however, surpass the European Central Bank's (ECB) deposit rate. With a two-year maturity, the average standing interest rate is currently at 2.55%, significantly higher than the ECB's deposit rate.