Overview
- The European Central Bank left its deposit rate at 2.25% on Thursday after raising rates by 25 basis points in June to counter an energy-driven inflation shock.
- Most banks have not passed June’s increase to existing savers: a Verivox analysis found only about 17% of German banks raised standard Tagesgeld rates for current customers.
- Several banks are advertising short-term promotional Tagesgeld yields of around 4% and low-minimum Festgeld deals, but many offers are time-limited or apply only to new deposits.
- Cross-border differences matter because some foreign providers pay interest gross and national deposit-guarantee schemes vary, so savers must check tax rules, payout terms and coverage limits before switching.
- Markets and economists still expect a possible further ECB hike in September depending on fresh inflation and energy data, so advisers recommend laddering maturities and comparing post-promotion rates.