German savings rates stable, but most below inflation rate

Savings rates in Germany are expected to be stable until at least mid-2026, though at the moment rates are below the inflation rate, meaning savings are losing value.

The annual rate of consumer price inflation for November, the most recent data available, was 2.3% but most banks offer lower rates for savers.

Economists do not currently expect key interest rates in the eurozone to fall further. The European Central Bank (ECB) has recently decided to leave interest rates unchanged four times in a row. This means that the deposit rate relevant for savers and banks will remain at 2% at the beginning of the new year.

However, in spring 2024, the deposit rate was twice as high at 4%.

Like other market observers, the comparison portal Verivox expects key interest rates to remain constant until at least mid-2026.

"Accordingly, interest rates for overnight money and short- to medium-term fixed-term deposits are also likely to remain fairly stable on average in the market," predicts Oliver Maier, managing director of Verivox Finanzvergleich GmbH.

According to the Verivox overview, fixed-term deposit offers with a 2-year term currently available nationwide yield an average interest rate of 2.04% (as of December 22, 2025).

After the ECB ended its zero interest rate phase in the summer of 2022, fixed-term deposit interest rates for a 2-year term climbed to an average of 3.39% in November 2023, then fell again to just under 2% in the wake of falling key interest rates. This downward trend has come to a halt since autumn.

Verivox regularly evaluates conditions for an investment sum of €10,000 ($11,774).

Often only meagre interest rates for overnight money

The average interest rate on overnight money accounts offered by the about 800 institutions analyzed by Verivox fell from 1.59% at the beginning of 2025 to 1.16% at the beginning of August.

Since then, according to Verivox's observations, overnight money interest rates have stabilized and currently average 1.30% for offers available nationwide.

However, many savings banks and some community banks offer significantly less on their overnight deposit accounts, which are a popular place to park money. Verivox noted that the average interest rate at savings banks is currently 0.37%, while in the cooperative sector it is 0.42% on average.

Competition stimulates business

Time and again, new providers vie for customers' cash with attractive offers in the tight German banking market. Some institutions offer new customers better terms than existing customers.

The planned launch of JPMorgan Chase's digital bank Chase in Germany, announced for the second quarter of 2026, could cause movement in the country's interest rate market.

"When entering the market, new providers often position themselves with particularly attractive terms in order to quickly build up a relevant customer base," said Verivox managing director Maier.

For example, when major Spanish bank BBVA launched in Germany in June, it temporarily offered 3% interest on current account balances for 12 months.

When established competitors come under pressure from newcomers, competition for the best interest rates arises regardless of the general interest rate environment, Maier said.

"In such a situation, attentive savers have lucrative investment opportunities."

Is it worth hunting for the best interest rate?

Stiftung Warentest, a German consumer organization that tests products, recently calculated whether interest rate shopping is really worthwhile based on an investment sum of €50,000. It looked at one saver who invested her money for a year at a fixed rate of 2.7% and received €1,350 in interest at the end.

This was compared to a second saver who switched banks four times within a year - hopping from one promotional overnight deposit rate to the next. The additional return from bargain hunting: around €220.

"Ultimately, it's a matter of personal preference whether you want to go to the effort," concludes test manager Kathy Elmenthaler. At the same time, Stiftung Warentest warns against overly tempting offers.

"Interest rate fraudsters are currently having a field day," she added.