Investing
The ECB has raised rates again and may repeat on October 29: what options it opens for savers
The deposit facility stands at 2.50% after September's rise and markets price rates near 3.1% in a year, with eurozone inflation at 3.8%. For conservative savers the map has changed: deposits, Treasury bills, money markets and bonds pay again.
Source: ECB (September 10, 2026 decision) and the euro-area AAA yield curve.
Key takeaways
For the first time in years idle money has a price again: a deposit at 3.3% or a money-market fund above 2.4% genuinely competes with equities for defensive profiles.
- The ECB raised rates by 25 basis points on September 10 and decides again on October 29, with eurozone inflation at 3.8%, almost double its target.
- AAA bonds price in 3.14% in one year: markets expect more hikes, not cuts, in the near horizon.
- The conservative menu reopens for savers: deposits above 3.3%, Treasury bills, money-market funds and short-dated public debt.
Why the ECB is hiking while the economy slows
The Middle East conflict keeps oil around 105 dollars and energy has pushed eurozone inflation back to 3.8%. The ECB prioritises its 2% mandate and has signalled it will act meeting by meeting, without committing to a fixed path.
Its own projections acknowledge the problem: average inflation of 3.0% in 2026 and 2.5% in 2027, far from target across the relevant horizon. The economy is holding up better than expected, leaving room to tighten without fear of imminent recession.
What it means for your mortgage, your account and your bonds
Higher rates push Euribor up —already at 3.22%— and make variable-mortgage resets dearer, but they also lift what deposits and interest-bearing accounts pay, now above 3.3% AER on the best offers.
In fixed income the rule is unchanged: when rates rise, existing bonds fall in price. Holders of long-dated debt take valuation losses; those staying short collect the new rate as they reinvest.
Concrete options for conservative money
The menu is ordered by risk: guaranteed deposits at 3.3-3.5% for one year, Treasury bills and short-dated public debt yielding around official rates, money-market funds tracking the 2.4-2.5% daily €STR, and interest-bearing accounts for the cash you need available.
The most sensible tactic now is laddering: splitting money across three or four maturities at 3, 6, 9 and 12 months captures the current rate and keeps periodic liquidity to reinvest if the ECB keeps hiking.
Quick tips
- Do not lock all your savings at the same term: staggering maturities lets you benefit from further hikes without penalties.
- Remember the tax difference: funds can be switched without a toll until redemption, while deposit and account interest is taxed every year.
- If your long bonds trade at a loss, do not sell in panic: at maturity you recover the face value; the problem only exists if you need the money sooner.
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