High Yield Savings Accounts Europe: Best Deposit +8% 2024 (My experience)

High Yield Savings Account Europe
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High yield savings accounts in Europe are finally back after 13 years.

I always keep some of my money in a high-yielding deposit account because it is a wise and relatively safe choice.

Be warned: this period of high interest on deposit accounts in Europe may not last forever. It is good to take advantage of it sooner rather than later, and that is what I am doing.

Here is the final list of the best high interest deposit accounts in the Old Continent.


High Yield Savings accounts accessible from Europe

NameInterest PaidFixed-termLimits
Freedom24 USDup to 8,46%3 to 12 MonthsMin 1000 USD
Trade Republic4%FlexibleMax 50.000€
Freedom24 USD5,31% (SOFR)FlexibleMin 150€
Scalable Capital4%FlexibleMax 100.000€

This list of the best accounts in Europe applies to most European citizens.

Taxes on interest earned on these accounts can also vary from country to country, but are usually not too high.


The best European savings accounts explained

When looking for the best savings account in Europe, you need to pay attention to some important details.

best European savings accounts

Among other things, I want to know how much my deposit is guaranteed and whether the offer is still active.

NameActive nowGuarantee up toInterestTypeProviderEarly withdrawal penalties
Freedom24Yes20.000 € by ICF
Investor Compensation Fund
3,89 to 8,76%
Investment yields are linked to the overnight LIBOR EURIBOR SOFR
Savings Plan (currency swap)Freedom24No
Trade RepublicYes100.000 € by DGS
Deposit guarantee scheme
4%
Interest is accrued on uninvested money held in the investing account. It may change in the future.
Investing accountMix of partner banksNo
Scalable CapitalYes100.000 € by DGS
Deposit guarantee scheme
4%
Interest is accrued on uninvested money held in the investing account. It may change in the future.
Investing AccountBaader Bank AGNo

These investment are protected by a European deposit guarantee scheme (FDG, DGS) and ICF, which would pay back between €20,000 and €100,000 per bank and holder in the event of bankruptcy.

Most people invest less than €20,000, so the guarantee scheme is large enough.

To use these accounts as an “emergency fund” container, it is better to choose those with a short fixed term, such as 3 months, or even better, totally flexible.

Disclaimer: Investing in stocks and other financial tools always carry the risk of loss of principal. Past performance is not a guarantee for future results. It is essential to conduct a personal analysis before making any investment. If necessary, independent investment advice should be sought from a certified professional. RevenueLand does not recommend investments or investment instruments. Here I am just sharing the result of my personal test with this tools. I don’t suggest you invest with any specific platform or brokerage firm.


Key Takeaways

  • High Yield Deposit Accounts can now offer higher interest rates without too much risk.
  • Flexible term savings accounts can offer good interest and cash is always available.
  • Profits from any deposit or investment account are taxed in the investor’s home country. You cannot be taxed twice, even if your bank/savings account is in another European country.
  • Fixed-term savings accounts in Europe are usually more profitable, but to withdraw funds we have to wait the end of the investment period.

The 3 types of interest-bearing accounts for European Citizens

  • (High Interest) Fixed-Term Savings Accounts
  • (High Interest) Flexible Savings Accounts
  • Interest paying investing accounts (available to almost every European Citizen)
 types of interest-bearing accounts for European Citizens

# Fixed-Term Savings Accounts

A fixed-term deposit is a financial savings product whereby we deposit a sum of money with a bank or financial institution for a specified period of time. In other words, a fixed-term deposit is a kind of loan that we give to the bank for a certain period of time.

Fixed-term deposits in Europe are difficult to compare as each country has its own characteristics.

During the investment period, the capital is locked in and cannot be withdrawn. It is also not possible to add more money.

Investors should be very cautious before opening a fixed-term savings account, as they would lose access to their hard-earned money for some time. Interest rates for a fixed-rate account can be higher compared to standard savings accounts but if you access your savings account before the end of the term, you may have to pay a fee. 

On the other hand, not having access to your money can be an advantage, as you won’t be able to spend it and you’ll be sure to get your capital plus interest at the end of the term.

Fixed rate savings accounts can be used for specific purposes, such as couples saving money to buy a house or other important financial goals.

# Flexible-Term Savings Accounts

With a flexible-term savings account, I, as the investor, am free to withdraw money from my investment without penalty.

The average interest paid on these accounts is usually lower than on fixed-term accounts, but the term is indefinite, so there is flexibility.

Traditional Banks may offer this type of account, but they offer very little interest, so flexible term accounts are a much better choice. A standard savings account usually offers low variable interest but allows you to save regularly.

Just like current cash accounts, these can be used to park our (life-saving) emergency fund.

An emergency fund (also called rainy day fund) is a must for everyone and should cover at least 6 months of family expenses.

# Interest-paying investment accounts

These are by far the most accessible to all savers in Europe.

With this type of account, I can make a deposit and start earning within a few days, sometimes within hours.

Investment accounts that pay interest:

  • are not locked in (in most cases)
  • offer interest, sometimes even calculated on a daily basis (maximum convenience)
  • Can invest in complex financial instruments like currency swaps or not

Choose your high interest rate saving account ⚠️ only after reading this

  • Accessibility to your money
  • High interest rates are not everything
  • Interest rates may not be guaranteed
  • Frequency of payment
  • Different currencies
  • Penalties

# Penalties

Investing in high-yield savings accounts sometimes requires you to tie up your money for a certain period of time.

In most cases, the only way to release it is to pay penalties.

The least onerous penalty could be that we lose the right to some of the interest we are entitled to.

In extreme cases, we could even lose part of the original investment and all the interest that has accrued.

It is necessary to do proper research and to know the penalties and the hidden fees in case we have to exit the investment before the deadline.

NOTE: All the investments I have listed in the tables above do NOT apply penalties.

# Accessibility to your money

Some accounts are based on the fact that money is locked away and unavailable for periods ranging from a month to many years.

It is therefore necessary to be aware that this money will not be available to us for the specified period.

Having money tied up when you need it immediately is not a situation we want to find ourselves in.

# High interest rates are not everything

Sometimes we are obsessed with getting the highest return on our money.

This is not wrong in principle, to earn interests is nice, but it is important to keep an eye on other variables such as the accessibility of the money, the frequency of interest payments and possible penalties.

# Interest rates may not be guaranteed

High yield savings accounts Europe with no capital restrictions, such as those listed above, generally do not guarantee that returns will remain so forever. Nor is there a minimum or maximum term.

In practice, you should use them as long as they offer high returns, as they do now.

# Frequency of payments

Some of the most popular savings accounts in Europe pay interest on a daily basis.

This is, of course, a very nice feature compared to the annual interest paid only at the end of the term, as is the case with most savings plans offered by banks.

# Different currencies

If you live in European countries outside the eurozone, you may have access to high interest bank accounts. This is mainly due to the fact that smaller currencies tend to offer higher risk and therefore higher returns.

If you live in a eurozone country, you may not have access to these high interest bank accounts and even if you do, you may not want to take on the currency risk. The best currencies to invest in from Europe are EUR and USD.


Interest-bearing accounts dictionary

  • Compound interest
  • Duration of the investment
  • Vinculation of money
Interest-bearing accounts dictionary

# What is Compound interest?

Compound interest occurs when the interest earned is added to the initial capital, causing the interest initially earned to generate new interest. In other words, it is a money multiplier effect, where as interest is earned, the amount increases and new interest is earned with an amount greater than the previous one.

# Duration of the investment

“Duration” is simply a measure of the length of an investment. In the case of interest-bearing accounts in Europe, it is mainly an issue for fixed-term accounts, as it defines the “maximum duration” of the investment.

#Locked savings accounts

A savings account is ‘locked’ if the investor does not have access to the funds for the agreed term.


Europe High Yield Savings accounts Reddit

There are some discussions on Reddit about how to have a high interest savings account as a European citizen.

best Savings accounts Reddit

I have read all the latest Reddit discussions for you and unfortunately nobody has the solution.

The European banking landscape is fragmented and only a few local banks offer high interest on deposits and usually not in euros.

Many experts if the personal finance field discussing high interest savings accounts on Reddit are experienced investors with a high risk tolerance. That is why they are talking about money market ETFs or very short-term bond funds.

Unfortunately, these are instruments that are out of reach for most European savers.

Many redditors point out that although the ECB has raised interest rates sharply, the yields on deposits offered by banks in Europe are still extremely low.

The most common wish on reddit is to be able to invest safely, without risk and with more interests. Can you blame them?


How are capital gains on interest-bearing accounts taxed in Europe?

As usual, each country has its own rules.

How are capital gains on interest-bearing accounts taxed in Europe

In some countries you pay no tax on the money you earn from investing in a savings account.

In others, such as Denmark, investors have to pay up to 42%.

Normally the “capital gain tax” is applied on the profit deriving from these investment.

Here is a fantastic picture of the tax situation in Europe from Taxfoundation:

map of the taxes on capital gain in Europe on savings accounts
Source:taxfoundation

Marginal capital gains tax rates for individuals in some European countries
May apply to most interest-bearing accounts (with exceptions and allowances)


CountryCapital Gains Tax Rate
Denmark42%
Norway35,2%
France34%
Finland34%
Netherlands31%
Finland34%
France34%
Germany26.38%
Greece15%
Hungary15%
Ireland33%
Italy26%
Latvia20%
Lithuania20%
Luxembourg0%
Poland19%
Portugal28%
Slovenia0%
Spain26%
Sweden30%
Switzerland0%
United Kingdom (GB)20%

In most cases, the same taxation applies to investments in European Dividend ETFs but also P2P lending and Real Estate Crowdfunding.


🇳🇱 Best High Yield Savings Accounts in the Netherlands

Dutch investors have always been interested in investing in interest-bearing accounts because they have always been smart savers.

Best savings accounts in Netherlands

The problem in recent years has been that savings accounts have been useless due to the low or negative interest rates dictated by the BCE.

Now everything has changed and the Dutch are finally back to investing in high-yield savings accounts in the Netherlands.

The best alternative to high yield bank accounts are the European Brokers like Trade Republic (4% yield) or even better Freedom24 (up to 8,76%, guaranteed up to 20.000€ by ICF).

Interest income, low-risk investments are now a necessity in Europe as inflation eats away at the money left in current accounts at an unprecedented rate.

Her is a comparison table with the best interest-bearing accounts in the Netherlands now:

InstitutionInterest Rate
in The Netherlands
Freedom24up to 8,76% (conditions apply)
Trade Republic4%
Bunq2.46% (conditions apply)
BigBank2.7% (conditions apply)
ABN AMRO1.25% (conditions apply)

Netherlands interest-bearing accounts Dictionary

  • rente means: interest rate
  • sparen means: savings
  • spaarrekening means: savings account

🇵🇹 High Yield Accounts in Portugal

Portuguese people are smart savers.

best savings Accounts in Portugal

Having a savings account and watching your money grow is like seeing flowers grow in your garden, and Portuguese love flowers.

A savings account (conta poupança, in Portuguese) is a financial product that aims to protect your savings, with the special feature of making them earn money. Unlike keeping your money at home or in the bank current account, a savings account helps to increase the value of your money through interest, without losing the original capital invested.


Here is the best savings account comparison in Portugal:

InstitutionInterest Rate
in Portugal
Freedom24up to 8,76%
Trade Republic4%
Conta Poupança Livre Banco CTT1,5% (conditions apply)
BPI – Conta Poupança ObjetivoTaxa Anual Nominal Bruta (TANB)
Conta Poupança Montepio M24TANB: 0,75%

Disclaimer: Investing in stocks and other financial tools always carry the risk of loss of principal. Past performance is not a guarantee for future results. It is essential to conduct a personal analysis before making any investment. If necessary, independent investment advice should be sought from a certified professional. RevenueLand does not recommend investments or investment instruments. Here I am just sharing the result of my personal test with this website. I don’t suggest you invest with any specific platform or brokerage firm.


🇩🇪 Best savings accounts in Germany

If you are a German investor you and you want to earn money on the money you have idling on the bank account, you have a lot of good options.

Best savings accounts in Germany

The rise of interest rate form the central banks have made investing in high yield savings account in Germany possible again.

In Germany there are two types of savings accounts:

  • Festgeldkonto (Fixed-term Savings Account)
  • Tagesgeldkonto (Flexible Savings Account)

Beside these there are also strong and reliable financial institutions like Trade Republic, Freedom Finance and Scalable Capital.

The most popular fixed-term interest-bearing accounts in Germany are Pbb Direct and KT Bank. The problem is that those are small entities and they require a minimum investment of 20.000€. So they are out of reach for most ordinary investor in Germany. Also Raisin bank is offering accounts with medium interest rates and under certain conditions in Germany.

Flexible savings accounts are a popular choice among consumers in Germany, but some apply monthly service fee that eats away all the interests earned.

Are bank deposit and savings accounts protected in Germany?

Yes. Savings accounts in Germany are protected by DGS, the Deposit Guarantee scheme, or by ICF, the investor compensation fund.


Are Savings Accounts in Europe Safe?

Security is absolutely essential when investing our savings.

In Europe, there are several guarantees in place to protect investors’ money.

Are Savings Accounts in Europe Safe

Governments guarantee money left in European bank accounts up to €100,000 in the event of failure. For the sake of transparency, I must mention that even if the money Europeans leave in savings and investment accounts is protected, it can take months to recover the full amount.

Brokers and most financial institutions regulated in the EU are subject to the ICF, a fund that protects investors up to €20,000 or 90% of the amount invested.

In the United States, the guarantee on savings is much higher than in Europe, up to $250,000. Most savings options in the UK are protected by the Bank of England or by the FSCS up to 85.000 GPB.

To asses the convenience and the safety of these investing accounts I have used the same principles I apply to find my best brokers in Europe.

Even some money transfers services are now offering accounts with interests but protections may be limited.


My opinion on the savings accounts for European Citizens

I have been using high interest savings accounts for many years and have lived in several European countries. I can therefore write about this subject from personal experience as a DIY investor.

I think it is always a good idea to keep some of your savings in interest-bearing accounts rather than with a broker or bank.

Even the Authors at the Central Bank stress the fact that everyone should have a savings account, regardless of age or financial situation.

I believe this is true, but we also need to be careful about choosing the best ones. I never forget that if one investment account pays a lot more than others, it may be carrying a bit more risk. That is why I tend to spread my savings across two accounts rather than putting all my eggs in one basket.


Video Best Savings Accounts on YouTube

Pros and Cons of High Yield Savings Accounts - You Won't Believe What We Found!

Simulation of 50.000€ invested in high interest saving account

How much can I earn investing in the best savings account interest rates available in Europe?

AmountYearsInterest rateTotal
interest
50.000€78%35.700€
50.000€73%11.500€
50.000€72%7.400€
50.000€71%3600€

This above is a fast table to understand how much interest I can earn by investing in the best savings accounts in Europe today.

Now that we know exactly how much we can earn investing this way, let’s move on to the conclusions.

investing accounts Europe

⚠️ This article is for information and educational purposes only. RevenueLand is NOT an investment advisor. Readers should not consider this publication to be an offer of personalised investment advice. Any investment involves risk, so inform yourself or seek assistance from the appropriate venues. Past performance is never a guarantee of future returns.


Conclusions on the best savings accounts in Europe

I prefer to use investing accounts beside traditional banks to get high interests from my savings accounts. This is because banks normally offer less and ask for huge minimum amounts to be invested.

Small local banks may offer good medium and long-term fixed rates, but it is good to make sure that the institution is safe and reliable.

There is a currency risk, so to be on the safe side it is better to prefer only EUR and USD high yield accounts.

To sum up, these are some of the best high-yield interest-bearing accounts in Europe:

  • Freedom24 (up to +8,76%)
  • Trade Republic (4%)
  • Scalable capital (4%)

These institutions are all regulated in Europe and have few requirements such as very low minimum investments.

European banks with high interest rates include Banca March and Santander in Spain, Barkleys in Ireland and Banca Sistema in Italy. Most of these banks require a minimum deposit of €10,000 and fixed terms. Too much for most European savers.


Savings Accounts FAQ

Can you open a savings account in any European country?

If you are legally resident in a European country, you have the right to open a “basic payment account”. European banks cannot refuse your application, but they may not allow you to invest in interest bearing savings accounts.

What is a fixed interest savings account?

A fixed-rate savings account is an agreement between the financial institution and the investor to fix an amount of money for a certain period of time and to receive interest at the end of the investment.

What does it mean if a savings account is withdrawable?

A savings account is freely withdrawable if the investor can withdraw some or all of the money from the account at any time.

Which bank offers the highest interest rate in Europe?

Currently, Banca Farmafactoring in Italy offers the highest interest rate in Europe. The problem is that this is a local bank with a not too long track record.

Which country has the highest interest rate on a savings account?

The Central Bank of Hungary had a base rate of 13% in 2023. This makes Hungary the country in Europe with the highest interest rate on a savings account. It is inaccessible to non-residents.

What is the savings ratio in Europe?

The household savings rate in Europe is around 14%. Italians are the population with one of the highest savings rates in Europe.

Where is the best paying savings account?

The highest yielding interest-bearing account in the world are in Argentina, with interest rates of around 113%. It is inaccessible to European investors.

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13 thoughts on “High Yield Savings Accounts Europe: Best Deposit +8% 2024 (My experience)

  1. Ivo says:

    As a east europe citizen who i planing to move to live in Germany that information was valuble. I will go for the best investing accounts in Germany instead of in my country. It seems much better. Am I missing something?

  2. Markesp says:

    Thank you this tutorial is very useful to me…I realised I knew nothing! And that how much I can improve myself to achieve the financial success I want, to obtain a long term passive income.
    Some good savings accounts as a starting point sounds fair to me. I trust you.

  3. Mary says:

    The greatest risk lies in the assets in which it is invested and in finding trustworthy institutions, although I always consider it essential to take advantage of the protection offered by European or North American regulations, as well as to ensure that the sums invested are not too large in my case.

  4. Fabio says:

    i’ve found this article very useful. I needed some advices to know how to improve my income. Starting from a good savings account if fair to me because I know nothing on personal finance!!!

  5. hrvoje peji says:

    I will start with little money week by week on Trade Republic, I have it in my phone, better than Revolut for sure.

  6. MRS Athens says:

    Piraeus bank Axizei is giving a savings account to its customers like me but a lots of conditions apply.
    AXIZEI Savings Account has a fixed interest rate for every month your account balance is:

    at least €1 higher than the previous month’s and over 300 euros.
    I don’t know what to think.

  7. Alexandra Sachita says:

    As an English-native living in Germany, I am very happy to find a article in English which is clear and well written on a subject that is not very common here in Germany and Austria.

  8. Lam says:

    You share a lot of what you know by testing for free. I appreciate it.
    Now I have registered to trederepublic savings account but I wonder how long they will pay the 4% interest.

  9. Angel says:

    Interesting rates offered by Freedom24 and Trade Republis, both stablished and reliable companies. Confidence is the great matter in this kind of investment, and avoidind scams and risks an essential rule in my opipinion, so opt for large companies is a good way to secure these operations.

  10. hrvoje peji says:

    I have tried Raisin and got disappointed.
    Happy you dont mention it in your list or I would have left the reading.
    Freedom24 is good, probably the best, but you get much more interest on their savings account if you invest (what for me is ) a lot and I am starting small.

  11. Andrea says:

    Undoubtely these options are better than those offered by traditional banks. Since large amounts of money to invest are not necessary, the participation of a greater number of people is facilitated. I believe that electronic entities are going to be prominent protagonists in the future.

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