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ECB Study | Savings abroad on the rise
- In August of 2024, eurozone households held total deposits of 151 billion with banks located in other euro countries. This equals 1.6 percent of all household deposits.
- Saving abroad has seen a rapid rise in Ireland over the past three years. Irish households almost doubled their deposits in other Eurozone countries in a period of three years, from 1.9 billion by the end of the second quarter of 2021 to 3.4 billion euros by the end of the second quarter of 2024.
- In spite of higher rates available abroad, the share of Irish household deposits held in other Eurozone countries nevertheless remains relatively modest, at 2%.
Saving abroad is surging across the Eurozone. That’s the conclusion of the European Central Bank (ECB) expressed in a recent blog post. From the beginning of 2020, the share of households deposits deposited in other eurozone countries has increased by a whopping 95 billion, to a total of 151 billion in August 2024. This equals an increase from 1.2 percent to 1.6 percent of all private household deposits. There are various factors driving this trend. It becomes clear, however, that banks in different euro countries have passed through central bank deposit interest rate to savers at different rates. Platforms such as Raisin Bank make it easier for customers to access attractive rates offered in different countries.
Katherina Lüth, financial expert at Raisin Bank, shares the following on the findings of the ECB:
“The number of savers who actively compare offers and benefit from higher rates abroad is increasing. This is conducive to greater competition and good news for savers, as competition between banks results in more attractive offers on Term Deposits and Demand Deposits. For their part, banks benefit from ever-increasing efficiency in covering their refinancing needs through the international deposits market.
Even with growing interest from savers and higher interest rates from banks, the total share of household deposits held in other euro countries is still relatively modest, now sitting at 1.6 percent. This demonstrates that many savers still do not benefit from higher offers abroad and lose out on attractive rates offered away from the high street. Irish savers have access to attractive products – ranging from Demand Deposits to Term Deposits with maturities ranging from 3 months to 5 years –, available with banks from an equally diverse set of countries. Smart savers compare and match accounts to their needs to ensure they get the most out of every single euro.”
Sources
Data on international deposit volumes collected by the ECB in cooperation with the national central banks, as published on the ECB blog on October 24, 2024. Additional data on Irish savings held abroad from the ECB data portal, accessed on October 25, 2024.
Press contact
Eoghan O’Hara
eoghan.ohara@raisin.ie