Italy savings account returns rise amid ECB rate hikes

Interest rates on savings accounts in Italy have increased following recent moves by the European Central Bank. As of September 2026, gross returns on five-year fixed-term deposits have reached 3.90 percent, while one-year fixed terms offer approximately 3.50 percent. Unrestricted deposits have also seen an increase of nearly 50 basis points, reaching around 3 percent.

Italy currently holds a favorable position in Europe, ranking fourth with an average gross annual rate of 2.84 percent, compared to the EU average of 2.57 percent. Lithuania leads the rankings with an average gross return of 3.34 percent.

When comparing savings accounts to Italian government bonds (BTP), BTPs often remain more advantageous for net returns on intermediate maturities. For example, to match a BTP with a net yield of 2.90 percent, a savings account would require a gross rate of approximately 3.92 percent due to taxation. Investors seeking specific semi-annual income from BTPs must account for the 12.5 percent tax rate on coupons and varying market prices, which significantly impacts the total capital required to reach specific income targets.