What is a savings account?

A savings account is a bank account where you earn interest on the money you deposit. The rate varies depending on the bank and account type.

Some traditional banks offer no return. By choosing the right savings account, your money can grow over time.

When you deposit money, you are effectively lending it to the bank. That's why it's important to be compensated in the form of interest.

Interest-bearing savings accounts

Saving in an interest-bearing account is a simple and often safe solution. In many cases these accounts are covered by the government deposit guarantee.

How to find the best savings rate

Rates vary depending on risk level, lock-in period and monetary policy.

A longer lock-in period can give a higher return but reduces the flexibility to withdraw the money.

Which savings account is best?

• Variable or fixed rate: Stability or market opportunity
• Deposit guarantee: Safety of the capital
• Access to money: Flexibility on withdrawals
• Interest from the first euro: Better return
• Free withdrawals: No fees

Different types of savings rates

Variable rate: follows the market and is more flexible

Fixed rate: stable return, often higher

Government deposit guarantee

The deposit guarantee protects savers if the bank goes bankrupt, within the limits set by law.

No deposit guarantee

Some institutions offer a higher return but also carry a higher risk.

Central bank rates

Central banks' decisions directly affect savings and loan rates.

How interest is calculated

• Daily calculation
• Rate tiers depending on balance
• Based on the lowest balance

The effect of compound interest

Compound interest lets you earn a return even on previously earned interest, which can produce exponential growth over time.

The information provided is indicative and does not constitute personal financial advice.