12.01.2018 | Estimated 3 minutes reading time | Print this article

Interest Rate Radar: Analysis of Deposit Interest Rates for Private and Business Customers

Highest Retail Deposit Interest Rates in the EU:
Compared to the previous month, there have been positive changes, especially among the best ranked 1-year term deposits (based on the respective top 5 term deposit offers). Italy continues to rank first with an increase of 0.12 percentage points to 1.66% – Italian 3-year term deposits remain unchanged at 2.01%. 1-year term deposits from Portugal rose by 0.06 percentage points to 1.13% and 3-year term deposits rose by 0.01 percentage points to 0.72%. On the other hand, French term deposits with maturities of 1 year and 3 years continue to rank unchanged third with interest rates of 0.98% and 1.25%, respectively. Belgian and Irish term deposits remain unchanged at the bottom of the ranking.


Retail Deposit Interest Rates of the 3 Largest Banks:
Again, most deposit interest rates of major European banks can be described as disappointing. Due to improved offers from smaller banks, the interest rate ratio of the three largest German banks vs. the best local offers rose by one point to 29. Due to a small increase of the average interest rate of major Dutch banks and a simultaneous deterioration of the best local offers, the Dutch ratio fell sharply by 5 points to 15. The Portuguese ratio rose by one point, which means that Portuguese savers can now earn 14 times higher returns on 1-year term deposits from smaller financial institutions than from the country’s largest banks. Major French and Irish banks still offer savers around one third and two thirds, respectively, of the best local offers.


Historical Development of Corporate Deposit Interest Rates:
The sharp negative trend in Italian corporate deposit interest rates continues: although the average interest rate is still well above the eurozone average, it has plummeted dramatically by more than 50% in the past 12 months and is now at its lowest level in the past six years. German and Dutch deposit interest rates also continue their long-term negative trend and are now in negative territory. The average Spanish deposit interest rate, on the other hand, experienced a turnaround last year and is now well above the eurozone average again.


Current Corporate Deposit Interest Rates in the Euro Area:
The results of the most recent analysis of corporate deposit interest rates show a similar picture as before. The average interest rate in the eurozone is currently 0.10%, which is 0.04 percentage points higher than in the previous month. Banks from Cyprus (1.27%), Greece (0.84%) and, lately also from Latvia (0.54%) offer much higher interest rates – the Latvian average interest rate rose by 0.35 percentage points compared to the previous period and thus Italian corporate deposit interest rates were relegated to fourth place. At the bottom end of the ranking are deposit interest rates from the Netherlands (-0.25%), Germany, Belgium, and Luxembourg (with -0.10% each) and Ireland (0.01%).


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As of January 09th; Sources:

Austria: biallo; Erste Bank, Raiffeiseinbank Oberösterreich, BAWAG PSK
Belgium: Spaargrids; ING Belgien, KBC, Belfius Bank
Denmark: mybanker; Danske Bank, Nykredit, Nordea
France: FranceTransactions / cbanque; BNP Paribas, Societe Generale, Crédit Mutuel
Germany: biallo; Deutsche Bank, Commerzbank, HypoVereinsbank

Ireland: Bonkers.ie; Bank of Ireland, AIB, Ulster Bank
Italy: Conti Deposito; UniCredit, Monte Dei Paschi Di Siena, Mediobanca
Netherlands: Spaarrente; ING, Rabobank, Abn-Amro
Norway: Norsk Familieøkonomi; DNB, Danske Bank, Nordea
Poland: Oprocentowanie; PKO Bank Polski, Bank Pekao, mBank

Portugal: Pedro Pais; BPI, BCP, Novo Banco
Romania: Conso.ro; BCR, BRD, Banca Transilvania
Spain: bankimia, iahorro, helpmycash; Santander, BBVA, Sabadell
Sweden: Finansportalen; SEB, Nordea, Swenska Handelsbanka
United Kingdom: Moneysupermarket; HSBC, Barclays, RBS