Heidelberg. According to an analysis by Verivox, interest rates on overnight money are falling. Where else can savers find good deals – and what are the alternatives?
- After the first reduction in the ECB’s key interest rate, the first banks also reacted and adjusted their overnight interest rates
- However, there are still attractive current accounts on the market and switching banks may be worth it.
- Verivox evaluated daily interest rates from over 800 banks and named the best offers
On June 6th the European Central Bank (ECB) decided on key interest rates in the euro area and indirectly also on fixed and overnight interest rates. Verivox data shows that after Fixed deposit Current interest rates have already passed their peak. Average interest rates fell slightly in April and May. With the ECB’s decision on the interest rate, this trend is expected to intensify in the coming weeks.
Verivox Daily Money Data Published – “Interest Rates Have Past Peak”
The Big Losers in the Interest Rate Recovery Are Noisy Verivox Savers in Volksbanks and Sparkassen. To date, almost three-quarters of savings banks and cooperative banks pay less than one percent interest daily – this comes from an assessment of Verivox which is available to our editorial team. To this end, the comparison experts evaluated the conditions of around 800 credit institutions for an investment value of 10,000 euros.
The analysis took into account all credit institutions with daily and term deposit offers that their Interest charges Publish for free on your website. The result is clear: “Current interest rates have surpassed their peak”, says Oliver Maier, managing director of Verivox.
Daily cash after ECB meeting: Verivox CEO with a clear statement
“In previous weeks, many banks were still waiting – but now savers have to prepare for the fact that overnight interest rates will also fall more significantly than before. In May, average interest rates for overnight interest offers available across the country fell slightly.” for the second month in a row – from 1.74 to 1.72 percent. The phase of continuous rise in interest rates had already stopped in previous months.
After a series of ten adjustments to key interest rates, the ECB’s deposit rate was reduced by 0.25 percentage points on 6 June. This one interest rate Banks make money when they deposit their customers’ savings with the central bank. As one of the few suppliers there Commercial Republic to ECB deposit interest rate via cash account passed on individually to customers – but banks often get rich.
© Press Graphics | Verivox
The best everyday money according to Verivox: these five lenders are convincing
“Many credit institutions recorded record interest surpluses last year”, summarizes Maier. However, for many overnight investors there was no sign of the high interest rate phase. In much of the Savings banks– and for Volksbank customers, the surge has completely passed today. All investors who benefited benefited daily invested through a direct bank.
Verivox comparison winners for daily cash are:
- Commercial Republic*: 3.75% interest via cash account for new and existing customers
- Bank Norwegian Plus savings account: 3.70% interest – but free deposits and withdrawals are limited
- Alisa Bank Daily Cash (via Weltsparen)*: Interest of 3.25% on an investment value of 5,000 euros
- Distingo Bank Daily Cash (via Weltsparen)*: interest of 3.31%
- Daily money from wiLLBe (Liechtensteinische Landesbank): 3.80% interest up to 50,000 euros
In the review, Verivox also cites daily cash offers with temporary special conditions – also called bait offers. Here interest is linked to certain conditions or interest is only available to new customers and only for a few months. O TF Bank pays for a daily deposit* around 3.80 percent interest. However, the terms only apply to new customers for three months – after which a variable base interest rate of 1.45 percent applies.
You can find more tests on various products and trends on the Berliner Morgenpost theme page.
No interest on overnight money: More than 20 banks do not pass on interest on deposits
O Suresse Direkt Daily Cash Account* and this Openbank Daily Cash There are also offers with temporary special conditions. However, here comes the fact that both Banks O Money of customers through Spanish deposit insurance. However, the country is not ranked as the best by major rating agencies. Both banks are owned by Finanztest is therefore on the list of non-recommended banks guided.
Only about a quarter (26 percent) of all 317 savings banks in Verivox’s analysis pay at least one percent interest on overnight money – at three out of four institutions the interest rates are lower. The average daily interest rate offered by all savings banks is 0.63%. 23 institutes and, therefore, seven percent of those assessed Savings banks does not offer any interest on the current account.
Many savings banks offer little or no interest on a savings account (file image) or everyday money – despite a four percent deposit interest rate.
© FUNKE Photographic services | Knut Vahlensieck
Daily cash: According to Verivox, many Volksbank customers are left with next to nothing
A similar picture emerges from the total of 369 regional cooperative banks in the assessment. The group includes local banks Volks- and Raiffeisenbanken, as well as banks PSD and Sparda. In this segment, just over a quarter (28 percent) of banks offer a daily interest rate of at least one percent – but on average, customers have to settle for 0.65 percent.
In 32 regional cooperative banks, savings remain in the Daily cash account even without interest. This practice is the absolute exception for banks active across the country (mainly direct banks). 72 out of a total of 88 credit institutions in this segment (82 percent) offer a daily interest rate of at least one percent. Only one bank does not pay interest on the current account. But the fact is that overnight interest rates can change quickly.
This is how Verivox evaluated
The comparison portal provides for this analysis Verivox The conditions of around 800 banks and savings banks were evaluated for an investment value of 10 thousand euros. Credit institutions with daily and time deposit offers that publish their interest rates, freely accessible on their website, were considered. The deadline for the evaluation was June 1, 2024.
Watch: Interest rates can change daily. The respective bank conditions and information apply.
Fixed term deposit instead of daily cash? Why interest rates will change little
Above all, the variables Daily Interest Rates Many banks may adjust as a result of the key interest rate cut. Could a fixed-term deposit be the alternative? I recently had Verivox, the fixed-term deposit, is more profitable than it has been in years described. In the current assessment, comparison experts come to the conclusion that interest rates on fixed-term deposits have only fallen slightly in previous months.
Maier explains: “Most banks face prospects of declining Interest charges calculated and this was priced into your fixed term deposit terms months ago. As long as the central bank is in a Basic interest rate cut “If we leave it until the summer, we don’t expect major fluctuations in fixed deposit interest rates.”
+++ You can find a lot of news in our current Daily deposits and fixed term deposits blog +++
Choose a fixed term deposit now? According to Verivox, when interest rates can drop drastically
However, if Christine Lagarde announces another interest rate cut in July, fixed deposit interest rates could also fall further, Maier suspects. For consumers, this means that anyone currently opting for a fixed-term deposit can secure interest rates of around 3.50 percent for a longer period of time and need not worry about changing interest rates. interest during that period.
In our June Fixed Term Deposit Comparison Some banks even offer interest rates in excess of three percent for fixed-term deposits of one to two years. These are two examples Klarna Fixed Term Deposit Plus* and this Bank of Scotland fixed deposit account*. In comparison, both banks offer good interest rates and stable deposit protection. The Swedish bank Klarna It also does not require a minimum investment amount and savers can use this Klarna bank account with daily cash with three percent interest.
+++ You can find a lot of news in our current Daily deposits and fixed term deposits blog +++
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