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!

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