Your savings interest rate is the percentage your bank pays you for keeping money in a Savings Account. The higher the rate, the faster your balance can grow, especially when interest compounds and you leave earnings in the account.

Fixed vs variable savings rates

Variable rates can change when your bank or the broader market shifts. In the eurozone, decisions by the ECB often influence what banks pay on deposits. Fixed rates, common on Term Deposits, stay the same for the agreed period so you know your return upfront.

Interest rate vs APY

The headline interest rate is not always the full picture. APY (Annual Percentage Yield) includes compounding, how often the bank credits interest to your balance. Two accounts with the same nominal rate can grow differently if one pays interest weekly and another annually.

What to watch beyond the rate

Compare access rules (withdrawal limits), any minimum balance, and whether interest is taxable in your country (Tax on Savings Interest). With bunq Savings Accounts, interest is paid weekly and you can open multiple accounts for different goals.