It is very difficult to keep track of the best offers on the market for high-yield savings accounts in Europe: new offers are hitting the market almost daily, and the current offers may frequently change the interest rates offered.
In this post, we will take a look at what is currently the best high-yield savings account across Europe. This will include not only banks but also e-Money Institutions and Investment brokerages, which also lead the way in offering high yields to their customers.
Trading 212 is currently offering the highest fixed return on your cash in Euros in Europe, where you can generate returns of 2.40%.
It’s not just about choosing the broker with the highest interest rate; it’s also crucial to consider how your funds are protected.
We believe the best combination of a high interest rate and protection is offered by Trade Republic at 2.25%.
Best savings accounts in Europe
| Platform | Interest Rate |
| Trading 212 | 2.40% |
| Lightyear | 2.30% |
| Trade Republic | 2.25% |
| Mintos | Up to 2.25% |
| Scalable Capital | 2.25% |
| Wise | 2.24% |
| Interactive Brokers | IBRK Pro 1.21% |
| BUX | 1.25% |
Updated as of 02/05/2025.
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The prerequisite for our selection criteria is that the accounts selected are available for most European citizens. Depending on where you are resident, additional options may be available to you at equivalent or better rates.
The best European savings accounts explained
Trading 212
Interest rate on offer: 2.40% on Euro balances.
How often interest is paid: Paid daily.
Limitations: No limit on balances that are eligible for earning interest.
Safety: Your uninvested cash is held within money market funds or deposits in financial institutions, which are covered by a deposit guarantee scheme up to €100k.
Founded in 2006 and with over 3 million funded accounts, Trading 212 is a fintech based in London that aims to democratize the entire investment process through a simple mobile application by allowing anyone to invest in more than 10,000 stocks and ETFs plus CFDs on Stocks, ETFs, Indices, Forex, and Commodities. It offers a free share worth up to €100!
In Trading 212, you will find commission-free stocks and ETFs trading, fractional shares, and an automatic investment system. On the downside, it shows some limitations regarding the products available, such as the lack of bonds and options.
Interested in knowing more about Trading 212? Read our Trading 212 Review.
Lightyear
Interest rate on offer: 2.30% on Euro balances.
How often interest is paid: Interest is accrued daily and paid on the 1st of every month.
Limitations: There are no restrictions or limits on the interest you can earn with Lightyear.
Safety: Not covered by a deposit guarantee scheme, but safeguarding is in place for customer funds.
While your funds are not covered by a conventional deposit guarantee scheme when you hold them with Lightyear, they do have to safeguard customer funds. Uninvested customer funds are stored separately from Lightyear’s business funds with regulated EU credit institutions and money market funds. The primary institutions where Lightyear holds uninvested customer funds are ABN AMRO Bank in the Netherlands and AS LHV Bank in Estonia, and in BlackRock money market funds rated AAA/mmf by Moody’s, S&P, and Fitch.
Co-founded by former Wise employees, Lightyear sets out to be a platform that allows you to invest your money globally without unnecessary barriers and with a simple, fair, and transparent pricing structure.
Lightyear is available in a large number of European countries, including; Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain, and the UK.
Trade Republic
Interest rate on offer: 2.25% on Euro balances.
How often interest is paid: Paid monthly.
Limitations: No limit on balances that are eligible for earning interest in most countries (For instance, in Portugal, the payment is on balances up to €50,000)
Safety: Your uninvested cash is held with either Solaris SE, Citibank Europe plc, Deutsche Bank AG, or J.P. Morgan SE, which are covered by a deposit guarantee scheme up to €100k.
Founded in 2015, Trade Republic is a discount broker based in Germany. It focuses on four types of financial assets: stocks, ETFs, cryptocurrencies, and derivatives.
Trade Republic remains one of the best brokers around, and you have the added benefit of being protected by a deposit guarantee scheme as your uninvested cash, which is held with either Solaris SE, Citibank Europe plc, Deutsche Bank AG, or J.P. Morgan SE are covered by a deposit guarantee scheme up to €100k.
Interested in knowing more about Trade Republic? Read our Trade Republic Review.
Mintos
Interest rate on offer: Up 2.25% on Euro balances.
How often interest is paid: Earned daily, but paid monthly.
Limitations: No maximum amount.
Safety: Not covered by a deposit guarantee scheme, but safeguarding is in place for customer funds.
Their feature about interest in cash is called Smart Cash, and it is a cash management solution that allows you to invest your money in a money market fund (MMF), which is an investment in low-risk (still, not guaranteed), highly liquid instruments that pay interest, such as government bonds. The value of your investment can fluctuate, and the invested capital is at risk.
Mintos invests your money in the BlackRock ICS Euro Liquidity Fund. The fund is authorized and regulated as a money market fund under the regulation on money market funds (Regulation (EU) 2017/1131). Mintos Smart Cash invests specifically in the Premier Distributing share class of the fund (ISIN IE000GWTNRJ7), which maintains a stable net asset value of €1.00 per share.
As a side note, Mintos offers up to €200 when creating an account using the promo code “GO-INVESTWEB”.
Scalable Capital
Interest rate on offer: 2.25% on Euro balances.
How often interest is paid: Interest is paid quarterly.
Limitations:up to €500,000 in PRIME+ (4.99€/month) and €50,000 in FREE
Safety: Not covered by a deposit guarantee scheme, but safeguarding is in place for customer funds
Scalable Capital was founded in 2014 and allows investors to independently trade stocks, ETFs, funds, cryptocurrencies, and derivatives.
From reading through Scalable Capital’s policies there is no reference to them being a member of a deposit guarantee scheme. They do mention that some of the banks that they choose to place your funds on deposit with to earn yield, which can then be returned to you, are members of a deposit guarantee scheme, but this will only offer limited protection to your funds in the event of a default.
Wise
Interest rate on offer: 2.24% on Euro balances.
How often interest is paid: the beginning of the following month.
Limitations: There are no restrictions or limits on the interest you can earn with Wise.
Safety: Not covered by a deposit guarantee scheme, but safeguarding is in place for customer funds. As Wise declares on its website: “We are not a bank, which means we don’t lend out our customers’ money to people or businesses. This also means our payment services aren’t subject to the Belgian Deposit Guarantee Scheme.”
However, Wise does have some safeguards in place for customer funds on European accounts, which segregate customer funds into a mix of cash in leading commercial banks (JP Morgan Chase) and low-risk liquid assets (Money Market Funds with BlackRock and State Street).
These assets are held in segregated accounts separate from Wise’s funds. In addition to this protection, each customer is eligible for protection under the Estonian Guarantee Fund (GF) up to a value of €20,000 in Europe, with respect to assets that have been invested.
Launched in 2011, Wise is foremost an eMoney business that is aimed at people who want to reduce the cost of making international money transfers.
One of Wise’s features is the ability to hold your funds in Cash, Stocks, or Interest. Wise will select an appropriate index fund and invest on your behalf when you choose to hold your money in stocks.
If you switch your money to ‘interest,’ these funds will be invested in government-backed short-term loans and bank deposits. The interest earned is then passed on to you.
Interactive Brokers
Interest rate on offer: The maximum interest rates on offer: IBRK Pro 1.21% on Euro balances. It may change without prior notice.
How often interest is paid: Accrued daily and paid monthly.
Limitations: No interest paid on balances less than €10k.
Safety: The level of protection you will receive for your money on deposit will vary from jurisdiction to jurisdiction.
The level of protection you will receive on your cash deposited with Interactive Brokers will vary a lot from jurisdiction to jurisdiction, this is something we covered in detail in a separate article if you are interested in learning more about your protections with IBRK and we also have a full review IBRK’s services if you want to dig a little deeper.
Interactive Brokers is a renowned online brokerage firm that offers individuals and institutions a wide range of investment and trading services.
One of the key features that sets Interactive Brokers apart is its advanced trading platform. Known as Trader Workstation (TWS), this platform offers a comprehensive suite of tools and analytics to assist traders in executing their strategies effectively.
In terms of the IBKR interest rates offering, IBRK offers different interest rates on each currency, from USD to ZAR. The highest interest rate you can earn on a Euro Balance will depend on how much you have on deposit with Interactive Brokers, namely:
- Your total account value must exceed $100,000 (or equivalent in €);
- And your cash balance > $10,000 (or equivalent in €). So, only the amounts above will be paid.
For example, imagine you have €120,000 in your account. Around €40,000 is in cash, so you will only get paid interest on €30,000:
Accounts with a Net Asset Value (NAV) above USD 100,000 (or equivalent in EUR) are paid interest at the full rate for which they are eligible. Accounts with an NAV of less than USD 100,000 (or equivalent in EUR) receive interest at rates proportional to the size of the account.
This makes it more difficult to determine the interest rate you will receive. Still, Interactive brokers have a calculator you can use to try and estimate your interest earnings.
BUX
Interest rate on offer: 1.25% on Euro balances.
How often interest is paid: Accrued daily and paid quarterly.
Limitations: Only balances up to €25,000 will be eligible for interest.
Safety: Your uninvested cash is held with ABN AMRO Clearing Bank, covered by a deposit guarantee scheme of up to €100k.
With over 700k users, BUX is a popular mobile investing app, especially if you want to create monthly savings plans to automate your investing into stocks or ETFs.
The fees at BUX have been creeping upwards of late, and they now charge you a monthly service fee of €2.99, which could eat into your interest if the sole purpose of opening a BUX account was to save.
The interest rate is valid for all uninvested cash balances in BUX up to €25,000. All cash accounts with BUX are held with ABN AMRO Clearing Bank and are protected up to €100,000 under the Dutch Central Bank’s Deposits Guarantee Scheme (DGS) conditions.
Check out our full review of BUX here.
Fixed-Term Deposits (via Raisin Bank)
So far, all the offers we have mentioned have primarily focused on accounts allowing you to withdraw your funds immediately. Generally speaking, you can attain higher interest rates on fixed-term products, which banks typically offer.
The difficulty here is interest rates have risen at a different pace in many European countries, and you may be one of the unlucky ones to be residing in a country that still has little choice in terms of fixed-term interest-bearing products compared to neighbouring countries.
Raisin Bank will allow you to find the decent interest rates you are looking for. Raisin Bank is a savings marketplace that partners with banks all over Europe to offer high-yield savings products (that are covered by deposit guarantee schemes). Many of these products are only available through Raisin Bank.
They act like a middleman; you create an account with Raisin Bank, select your preferred deposit account, and transfer the amount you want to deposit, and Raisin Bank will look after the rest.
While they operate across most of Europe, the best savings options listed in Raisin Bank are currently available to those in Germany, the Netherlands, Spain, Ireland, Austria, France, and the UK.
Discover the best savings account rates in various European countries
Check our Cash Interest Tool, where we filter the best banks and brokers with the highest interest rates online available in each country.
This tool is updated monthly, to help you make an informed decision.
Can you open a savings account in another EU Member State (as a Non-Resident)?
If you are a resident of an EU country, you will be entitled to open a basic current account that allows you to make deposits, withdraw funds, and receive and make payments. Even if this bank is not established in the same EU member state where you reside, you may need to provide a justification for opening such an account.
This same entitlement does not apply to other accounts such as loan and savings accounts.
This, therefore, makes it difficult to mobilise your savings to take advantage of the highest interest rates in other EU member states.
Are there any alternatives to savings accounts?
The yields on savings accounts are improving in Europe, but if the returns are still not meeting your needs, then here are some alternatives that you could research:
- Certificates of Deposit (CD)
- Money market funds
- Corporate Bonds
- Peer to Peer lending
- REITs
- ETFs
- Stocks
All of these investments offer varying degrees of risk and potential returns. The key is to evaluate your risk appetite and choose the best investment product.
Conclusion
The interest rate environment is evolving very fast in Europe, and competition is heating up among providers of all kinds.
Every individual will have completely different financial goals, and each of those goals will have different time horizons, which makes it important to choose the right savings account to meet your needs.
Some key considerations to mull over before making your decision are:
- Do you need to have quick access to your savings? Or can I lock them up for some time?
- Are there any hidden fees?
- Is a higher interest rate worth it if your funds are not protected by a deposit guarantee scheme?
- Don’t forget to calculate the taxes on interest earned to get a clear view of what net amount you will profit from your savings.
FAQs
What is the taxation of interest-bearing accounts?
Capital gains and interest earned from savings accounts are subject to taxation in Europe. Here are the key points to consider:
- Capital Gains Tax: This is a tax on the profit earned from the sale of an investment, such as stocks or ETFs. The rate varies by country and your personal income level.
- Country-Specific Tax Rules: Each European country has its own tax regulations regarding interest-bearing accounts. It’s important to be aware of the specific rules in your home country to ensure compliance.
- Double Taxation: If you earn interest in a country different from your residence, you might be subject to taxes in both countries. Many countries have treaties to prevent double taxation, so check if such agreements exist between your home country and the country where your account is held.
- Home Country Taxation: Regardless of where your savings account is located, you are generally required to report and pay taxes on the interest earned to your home country’s tax authorities.
- Tax-Free Savings Accounts: Some countries offer tax-advantaged accounts where the interest earned is exempt from taxes, up to a certain limit. These accounts can be a beneficial option for maximizing your savings.
- Marginal Tax Rates: The rate at which your last euro of income is taxed. Understanding your marginal tax rate can help you estimate the tax you’ll owe on interest earned from your savings accounts.
- Profit Taxation: Beyond capital gains, any profits earned from investments within your savings account may also be subject to taxation based on your country’s laws.
- Investment Account Taxation: Different types of investment accounts may have varying tax treatments. For example, ISAs in the UK offer tax-free interest, while regular savings accounts do not.
What are the definition that I should know related to interest-bearing accounts?
Here are some important definitions:
- Compound Interest: The interest calculated on the initial principal and also on the accumulated interest from previous periods.
- Investment Duration: The length of time your money is invested or saved in an account. Longer durations typically offer higher interest rates.
- Locked Savings Accounts: These accounts require you to keep your funds deposited for a fixed period. In return, they often offer higher interest rates compared to flexible accounts.
- Flexible Term Savings Accounts: Unlike locked accounts, these allow you to deposit and withdraw funds without a fixed schedule, offering greater accessibility to your money while still earning interest.
- Vinculation of Money: Refers to the commitment of your funds to remain in a savings account for a specified period to earn interest, often seen in locked savings accounts.
- Accessibility to Your Money: The ease with which you can access your funds. Flexible term savings accounts typically offer higher accessibility compared to locked accounts.
