Why savings rates are rising in Europe
European banks have increased savings interest rates sharply during 2025. The main reasons include:
- Central Bank tightening policies
- Higher inflation pressure
- Banks competing for customer deposits
- Lower borrowing demand
In October 2025, the European Central Bank held its policy rate at 4.25%. This pushed many online banks to raise their savings rates to attract customers.
Top high-interest savings accounts (Nov 2025)
Here are the most competitive offers across Europe:
| Bank | Country | Rate | Type |
|---|---|---|---|
| N26 | Germany | 4.00% | Instant access |
| Revolut Ultra | EU | 4.75% | Flexible |
| Bunq Easy Save | Netherlands | 5.10% | Daily interest |
| Banca Viva | Italy | 6.00% | 6-month fixed |
What type of saver benefits most?
The biggest winners right now are:
- Savers keeping emergency funds
- People holding large cash balances
- Short-term investors waiting for market stability
Instant access vs fixed term
Instant access accounts:
- Lower rates
- Money available anytime
- Good for emergency savings
Fixed term accounts:
- Higher rates
- Locked money for 3–12 months
- Penalty fees for early withdrawal
Risks to consider
- Rates can fall quickly
- Fixed term penalties
- Bank stability
- Currency risk for cross-border accounts
How to choose the best account
Ask yourself:
- Do I need instant access?
- Is the bank covered by a deposit protection scheme?
- What fees apply?
- Is the rate promotional or long term?
Deposit protection rules
Most EU banks protect customer deposits up to €100,000 through national guarantee systems. This makes high-rate banks much safer than riskier investment options.
Bottom line
Savings rates in Europe are the strongest they have been in more than ten years. If you hold cash, this may be the best time to secure higher returns, whether through flexible accounts or short-term fixed deposits.
This article is general information only and does not constitute financial, investment, legal, or tax advice. It does not consider your objectives, financial situation, or needs. You may wish to seek personalised advice from a licensed professional before making financial decisions.