European savers are frustrated with banks for not passing on higher interest rates to their savings accounts. Despite the European Central Bank (ECB) raising rates multiple times since July 2022, banks have been slow to increase rates for savings accounts. Data shows that on average, only half of the increase in ECB interest rates has been passed on to depositors. There are stark differences among euro zone countries, with some offering higher deposit rates than others. Retail investors have been seeking more attractive investments elsewhere due to low rates on deposits. Disgruntled savers pose potential problems for the banking sector.
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