This month, the focus will be on negative real interest rates of savings products! For better illustration purposes, we also added an additional column to our second graph. This way, it will be even easier to highlight the link between the interest rates underlying the ratio.
Highest Retail Deposit Interest Rates in the EU:
Inflation rate rises faster than interest rates of savings products
It is interesting to note that in the last month interest rates with a maturity of 1 year only rose moderately by 1.29% to an average interest of 0.94% and, at the same time, interest rates with a maturity of 3 years even declined by 3.74% to an average interest of 1.08% in the countries surveyed. Due to the strong increase of inflation rates in the past six months, this leads to negative real interest rates for almost all savers with a current inflation rate of 1.30%.
Data shows that only savers from Italy beat inflation by investing in term deposits with maturities of 1 year (1.92%) and 3 years (2.41%). Although almost all other savers are better off with term deposits with longer maturities, they still earn negative real interest.
Retail Deposit Interest Rates of the 3 largest banks:
Major German banks offer the lowest interest rates in the Eurozone
The average interest rate of 1-year term deposits offered by major Dutch banks rose to 0.05%. Therefore, the largest banks from Germany now offer the lowest interest rates in the Eurozone and also have the highest ratio of top-5 local offers vs. largest 3 banks: Top-5 local banks offer an average interest rate that is 26 times higher! On the other hand, major banks from France offer an average interest rate that is still about a quarter of the average interest rates of their local top-5 counterparts.
As of July 31st; 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: Moneyfacts; HSBC, Barclays, RBS