I was searching online some information about interest rates for savings accounts in European Union for the year of 2014.
Update: Highest Deposit Rates in the World by Country 2018
Basically, I was doing this "research" because I found that in some member states interest rates for savings accounts are pathetically modest.
I mean annual interest rate of 0.008 or even 0.005% seems very pathetic to me. Taking into account that interest rates in Georgia are about 6% for savings in National currency (Georgian Lari) and about 2.5% for USD/EUR.
Overlooking all bank offers in Georgia, I did find interest rates even of 9% (National currency) and 5% (USD/EUR).
Anyway, I tried to figure out - do interest rates in European Union are low in overall, or just in some specific counties.
It turned out I have missed a very important "update" from European Central Bank.
Why has the ECB introduced a negative interest rate?
The European Central Bank's mandate is to ensure price stability by aiming for an inflation rate of below but close to 2% over the medium term. Like most central banks, the ECB influences inflation by setting interest rates. If the central bank wants to act against too high inflation, it generally increases interest rates, making it more expensive to borrow and more attractive to save. By contrast, if it wants to counter too low inflation, it reduces interest rates.
Since euro area inflation is expected to remain considerably below 2% for a prolonged period, the ECB's Governing Council has judged that it needs to lower interest rates. The ECB has three main interest rates on which it can act: the marginal lending facility for overnight lending to banks, the main refinancing operations and the deposit facility. The main refinancing rate is the rate at which banks can regularly borrow from the ECB while the deposit rate is the rate banks receive for funds parked at the central bank. All three rates have been lowered.
To maintain a functioning money market in which commercial banks lend to each other, these rates cannot be too close to each other. Since the deposit rate was already at 0% and the refinancing rate at 0.25%, a cut in the refinancing rate to 0.15 % meant the deposit rate was lowered to − 0.10 % to maintain this corridor.
The cut is part of a combination of measures designed to ensure price stability over the medium term, which is a necessary condition for sustainable growth in the euro area. Source: https://www.ecb.europa.eu/home/html/faqinterestrates.en.html
Indeed, as I found later in my research interest rates in European Union are low everywhere.
So I dug further and found a resource of highest interest rates in Europe:
Highest Interest rates for EUR
|
Company
|
Country
|
GDP
|
Term
|
Currency
|
APY
|
Last Updated
|
||
|---|---|---|---|---|---|---|---|---|
| Prominvestbank EUR 1 Month Deposit |  |
Ukraine | 6,665* | 1 month | EUR | 8.00% | Sep, 2014 | More Info |
| National Irish Bank Fixed Term Deposit |  |
Ireland | 38,685 | EUR | 2.75% | Sep, 2014 | More Info | |
| ZABA 1 Year Term Deposit |  |
Croatia | 17,810 | 1 year | EUR | 2.20% | Sep, 2014 | More Info |
| Piraeus Bank 1 Year Time Deposit |  |
Greece | 29,663 | 1 year | EUR | 2.10% | Sep, 2014 | More Info |
| Piraeus Bank 1 Month Time Deposit | |
Greece | 29,663 | 1 month | EUR | 2.10% | Sep, 2014 | More Info |
| Piraeus Bank 6 Month Time Deposit | |
Greece | 29,663 | 6 month | EUR | 2.10% | Sep, 2014 | More Info |
| Piraeus Bank 3 Month Time Deposit | |
Greece | 29,663 | 3 month | EUR | 2.10% | Sep, 2014 | More Info |
| Bank of Ireland 1 Year Term Deposit |  |
Ireland | 38,685 | 1 year | EUR | 1.90% | Sep, 2014 | More Info |
| Bank of Valletta 1 Year Fixed Deposit |  |
Malta | 23,667 | 1 year | EUR | 1.75% | Sep, 2014 | More Info |
| Ulster Bank 6 Month Fixed Term Deposit |  |
Ireland | 38,685 | 6 month | EUR | 1.75% | Sep, 2014 | More Info |
| ZABA 6 Month Term Deposit | |
Croatia | 17,810 | 6 month | EUR | 1.74% | Sep, 2014 | More Info |
| Ulster Bank 1 Year Fixed Term Deposit | |
Ireland | 38,685 | 1 year | EUR | 1.70% | Sep, 2014 | More Info |
| ING Italia 1 Year Fixed Term Deposit |  |
Italy | 29,418* | 1 year | EUR | 1.60% | Sep, 2014 | More Info |
| ZABA 3 Month Term Deposit | |
Croatia | 17,810 | 3 month | EUR | 1.57% | Sep, 2014 | More Info |
| BES 1 Year Term Deposit |  |
Portugal | 23,361 | 1 year | EUR | 1.50% | Sep, 2014 | More Info |
| Bank of Ireland 6 Month Term Deposit | |
Ireland | 38,685 | 6 month | EUR | 0.90% | Sep, 2014 | More Info |
| ABN AMRO 5 Year Time Deposit |  |
Netherlands | 39,877 | 5 year | EUR | 0.90% | Sep, 2014 | More Info |
| BBVA 1 Year Time Deposit |  |
Spain | 29,625 | 1 year | EUR | 0.85% | Sep, 2014 | More Info |
| ING DiBa 1 Year Time Deposit |  |
Germany | 34,388 | 1 year | EUR | 0.80% | Sep, 2014 | More Info |
| ING DiBa Austria 1 Year Fixed Deposit |  |
Austria | 39,634 | 1 year | EUR | 0.8% | Sep, 2014 | More Info |
| Barclays Spain 1 Year Time Deposit |  |
Spain | 29,625 | 1 year | EUR | 0.80% | Sep, 2014 | More Info |
| Unicredit 2 Year Certificate of Deposit |  |
Italy | 29,418* | 2 year | EUR | 0.65% | Sep, 2014 | More Info |
| ING Belgium 1 Year Term Account |  |
Belgium | 36,274 | 1 year | EUR | 0.50% | Sep, 2014 | More Info |
| Deutsche Bank 5 Year Fixed Deposit |  |
Germany | 34,388 | 5 year | EUR | 0.50% | Sep, 2014 | More Info |
| Unicredit 1 Year Certificate of Deposit | |
Italy | 29,418* | 1 year | EUR | 0.50% | Sep, 2014 | More Info |
| ProCredit Bank Kosovo 1 Year Term Deposit Account |  |
Kosovo | 7,506 | 1 year | EUR | 0.50% | Sep, 2014 | More Info |
| BBVA 6 Month Time Deposit | |
Spain | 29,625 | 6 month | EUR | 0.45% | Sep, 2014 | More Info |
| ABN AMRO 2 Year Time Deposit | |
Netherlands | 39,877 | 2 year | EUR | 0.45% | Sep, 2014 | More Info |
| Swedbank Estonia 1 Year Term Deposit |  |
Estonia | 20,379 | 1 year | EUR | 0.42% | Sep, 2014 | More Info |
| Unicredit 6 Month Certificate of Deposit | |
Italy | 29,418* | 6 month | EUR | 0.40% | Sep, 2014 | More Info |
| ABN AMRO Savings Deposit | |
Netherlands | 39,877 | 1 year | EUR | 0.40% | Sep, 2014 | More Info |
| BBVA 3 Month Time Deposit | |
Spain | 29,625 | 3 month | EUR | 0.35% | Sep, 2014 | More Info |
| Deutsche Bank 1 Year Fixed Deposit | |
Germany | 34,388 | 1 year | EUR | 0.30% | Sep, 2014 | More Info |
| Unicredit 3 Month Certificate of Deposit | |
Italy | 29,418* | 3 month | EUR | 0.30% | Sep, 2014 | More Info |
| Deutsche Bank 2 Year Fixed Deposit | |
Germany | 34,388 | 2 year | EUR | 0.30% | Sep, 2014 | More Info |
| BNP Paribas 1 year Fortis Fixed Term Deposit |  |
Belgium | 36,274 | 1 year | EUR | 0.25% | Sep, 2014 | More Info |
| BBVA 1 Month Time Deposit | |
Spain | 29,625 | 1 month | EUR | 0.25% | Sep, 2014 | More Info |
| Deutsche Bank 6 Month Fixed Deposit | |
Germany | 34,388 | 6 month | EUR | 0.20% | Sep, 2014 | More Info |
| ING 1 Year Fixed Term Deposit |  |
Netherlands | 39,877 | 1 year | EUR | 0.20% | Sep, 2014 | More Info |
| Postbank 1 Year Fixed Deposit |  |
Germany | 34,388 | 1 year | EUR | N/A | Sep, 2014 | More Info |
So for now if you are looking for higher interest rates - avoid European Union!