European savers are increasingly moving their money from accounts that offer no or little interest to those that do, a shift that’s likely to cut into lenders’ income.
Bank clients pulled out of sight deposits in February at the fastest rate since European Central Bank records began in 2003, data published this week showed. Accounts with fixed maturities, meanwhile, attracted the biggest inflows in more than a decade in January and kept up that pace in February. European banks offer next to no interest on sight deposits while it can be as much as 2% for term deposits.
Source : European Banks Lose Low-Cost Deposits as Savers Chase Higher Rates