The European Central Bank raised all three of its key interest rates by 25 basis points on 11 June 2026, marking its first rate hike since 2023. The deposit facility rate rises from 2.00% to 2.25%, effective 17 June 2026. The ECB cited sustained inflation driven by the conflict in the Middle East, projecting headline inflation at 3.0% for the full year 2026 — well above the 2% target.
For neobank customers in Europe, the rate decision has immediate practical consequences. Most European neobanks peg their cash interest rates to the ECB deposit facility rate. When the ECB cuts rates, neobanks lower savings yields; when it hikes, the best-positioned platforms pass the increase on quickly.
Trade Republic tracks the ECB deposit rate directly. In Germany, the Berlin-based broker-bank pays 2.25% p.a. on uninvested cash — moving in lockstep with the new ECB rate and applied to both existing and new customers, calculated daily and paid monthly. The rate varies by market: in some countries it is higher (for example, around 3.04% TAE in Spain), reflecting local conditions.
By comparison, bunq offers up to around 2.01% EUR on personal savings (a 1.51% base rate plus a bonus that can lift the headline yield to 2.01%). N26 Metal pays around 1.50% for new accounts, though some legacy account vintages still carry rates close to 2.25%.
The net picture after the hike: the top widely-available EU neobank cash rates sit around 2.25% (Trade Republic), with bunq close behind at roughly 2.01% and N26 Metal around 1.5%. The gaps are narrow, so the practical choice often comes down to the rest of the package rather than a few basis points.
The ECB’s projections signal a more extended rate environment than the market had priced. The bank now sees headline inflation averaging 3.0% in 2026, falling to 2.3% in 2027 and returning to 2.0% by 2028. If that trajectory holds, neobanks that offer ECB-linked returns could maintain competitive savings yields through the end of 2026 and into 2027.
For consumers comparing savings options, the practical question is not just the headline rate but the frequency of payment (daily compounding vs monthly settlement) and whether the rate is guaranteed or tied to a financial instrument. Trade Republic’s rate applies to uninvested cash in its brokerage accounts; bunq’s applies to savings accounts under its Dutch banking licence. Both carry €100,000 in EU deposit guarantee scheme protection.
Full comparison of EU neobank savings rates post-ECB hike is available at neobanks.guide/savings-rates.
Source: https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.mp260611~4d41bd5e83.en.html