ECB interest rate hikes fail to reach German regional bank savers

Despite the European Central Bank (ECB) raising interest rates by 0.50 percentage points this year, bringing the deposit rate to 2.50 percent, customers of many regional banks in Germany are seeing minimal benefits.

An analysis by the consumer portal Biallo reveals a significant gap between central bank rates and what savers receive. Existing customers at Sparkassen (savings banks) receive an average of only 0.47 percent on overnight money, while customers at cooperative banks (Genossenschaftsbanken) receive 0.55 percent.

According to Biallo interest expert Rudolf Krux, only 0.06 percentage points of the 0.50 point ECB increase have reached Sparkassen customers, representing just 12 percent of the total hike. Similarly, cooperative bank customers have only seen an increase of 0.10 percentage points, or 20 percent of the ECB's adjustment.