European call money rates reach highest levels since 2009

Call money (Tagesgeld) interest rates in the European market have reached their highest levels since 2009. Following interest rate hikes by the European Central Bank (ECB), which raised the key rate to 2.5 percent in September, top-tier banks are offering rates exceeding the 4 percent mark to attract new customers.

Several financial institutions are utilizing promotional models to compete. For example, Chase Bank has offered 4 percent interest for four months on balances up to 500,000 euros. DKB has adopted a similar model for amounts up to 100,000 euros starting in November. Other competitive offers include Revolut, which provides 4.25 percent (limited to 25,000 euros for four months), and Crédit Agricole, offering 4.10 percent for four months.

While promotional rates are high, they often decrease after an initial period. For instance, Revolut’s rate drops to 1.25 percent after four months, whereas Crédit Agricole’s rate settles at 2.50 percent. These banks operate under EU or Liechtenstein regulations, ensuring deposit protection for at least 100,000 euros per person.