Berlin-based neobank N26 also wants to pass on the increased interest rates to its customers – CEO Valentin Stalf announced the launch of a savings product at the Finance Forward conference.
Overdraft facilities, installment payments, insurance, cryptocurrencies, and the current account – this has been the product portfolio at Germany’s leading neobank N26. According to founder Valentin Stalf, an interest offer is to be added: A Savings product is in the starting blocks.
Only after the end of 2022 N26 had offered a call money account called EasyFlex Savings in cooperation with the Norwegian partner bank Komplett, respectively, the interest platform Raisin, but this was discontinued.
With central banks’ turnaround in interest rates, banks can once again pay their customers interest on their savings deposits. However, many financial institutions have yet to pass the increased prime and capital market rates to savers.
This could change because of the market movement: ING Bank is offering three percent interest on its overnight money in Germany – at least for new customers and new money from existing customers. Previous deposits will continue to earn only 0.6 percent interest – which is still a little higher than many savings or cooperative banks. In addition, the offer is limited in time to six months.
In the U.S., the market is being shaken up by a non-financial player: Apple recently launched an interest rate offer that offers 4.15 percent and is offered with the central bank Goldman Sachs.
Neobroker Trade Republic had kicked off the interest rate race in early January with a two percent lock offer. Oliver Geiseler, Senior Partner of the management consultancy Capco, recently told Capital that branch banks are now also likely to enter the race. In addition to the branch banks, he also expects rising savings interest rates for car banks. The financial divisions of Volkswagen, BMW or Mercedes use savings deposits to refinance their business.
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