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Which accounts pay interest on savings? Banks, brokers and wallets compared
An educational comparison of current accounts, deposit accounts, brokers, wallets, money-market funds and government bills, with a chart of 10,000 € over 10 years.
In short
- Many kinds of account can pay interest, but rate, access to your money, protection and tax differ enormously.
- A high rate is not enough: what matters is whether it is fixed or variable, how long it lasts and what conditions it carries.
- Watch the currency, activation conditions and hidden costs: a high rate can cost more than it earns.
Four questions before you look at the rate
- When might I need this money? If you could need it soon, access matters more than the rate.
- Who holds it and how is it protected? A bank deposit is not the same as a balance on an investment platform or a fund. To check who a firm is, see how to check if a broker is authorised.
- Is the rate fixed or variable? A variable rate can fall at any time.
- What is left after tax and costs? Tax, fees and currency conversion can cut the real return a lot.
The main account types compared
I do not quote specific rates of banks or platforms because they change often. Always check current terms on the provider's own site.
| Type | How the rate works | Access to money | Protection | Watch out for |
|---|---|---|---|---|
| Current account | Often very low or zero | Immediate | Deposit guarantee up to 100,000 € per depositor per bank (EU rule) | Fees can exceed the interest |
| Instant-access savings account | Variable; sometimes time-limited promotional rates | Immediate or short notice | As above, if it is a bank | When the promotion ends and what the rate falls to |
| Fixed-term deposit | Fixed for the whole term | Locked until maturity; leaving early can cost interest | As above, if it is a bank | Little flexibility; compare term and penalties |
| Cash on a broker or investment platform | Usually variable, sometimes linked to balance, client tier or activation | Usually quick, but it is a trading account | Depends on the firm and country; often investor-compensation schemes with limits different from the deposit guarantee | Conditions, balance currency, conversion costs |
| Fintech wallet or app | Very variable | Usually immediate | Depends on whether funds are a bank deposit or safeguarded e-money | Who the issuer really is and what protection applies |
| Money-market funds or ETFs | Yield follows short-term rates | Can be sold within days | No bank guarantee | Capital is not guaranteed; fees (TER) and tax. See also ETFs explained |
| Short-term government bills | Yield known at purchase if held to maturity | Can be sold earlier, but the price may vary | Credit risk of the issuing state | Tax treatment differs from bank interest (in Italy, for example, 12.5% on government securities versus 26% on bank-account interest: check current rules) |
Which type for which purpose
The right place for idle money depends mostly on when you may need it. These are general considerations, not recommendations.
| When you may need the money | What matters most | Types usually considered |
|---|---|---|
| Within weeks or months (emergency fund) | Immediate access and protection; the rate comes second | Current account, instant-access savings account |
| In one to three years | Knowing the yield in advance, and what leaving early costs | Fixed-term deposit, short government bills |
| Not for five years or more | Inflation and what you accept to risk: cash alone may lose value in real terms, while anything with higher expected returns, such as funds, can also fall | A mix chosen on your goals; see the compound interest calculator to size the effect |
How to compare offers properly
- Nominal or effective rate? Check it is quoted per year and whether it compounds.
- Time-limited promotions. A high rate for three months is not a high rate for a year.
- Balance thresholds. Some offers apply only to certain amounts.
- Activation conditions. Whether you must do something to receive it, and what happens if you forget.
- Account currency. A rate in dollars is earned in dollars: in euros, the exchange rate matters too.
- Tax and stamp duty. Interest is taxed, and some countries add yearly charges on accounts held with foreign providers. Check what applies to you, starting from taxes on investing with a foreign broker.
What happens to 10,000 € left untouched for 10 years
The chart shows the effect of compound interest on 10,000 €, assuming a constant rate. In reality rates change and, on variable-rate accounts, they are not guaranteed. It shows an order of magnitude, not a forecast.
| Scenario (hypothesis) | Value after 10 years | Interest (gross) | Real value at 2% inflation |
|---|---|---|---|
| Account paying no interest (0%) | 10,000 € | 0 € | 8,203 € |
| Hypothetical rate 2% | 12,190 € | 2,190 € | 10,000 € |
| Hypothetical rate 3% | 13,439 € | 3,439 € | 11,025 € |
| 3% in a foreign currency, net of an EUR→USD→EUR conversion (0.75% + 0.75%), exchange rate unchanged | 13,238 € | 3,238 € | 10,860 € |
Three things to notice. First: leaving money at 0% feels safe, but with 2% yearly inflation its real value falls by about 18% in ten years. Second: the gap between 2% and 3% over ten years is worth more than a thousand euros on 10,000. Third: if you must convert into another currency to get the rate, costs and the exchange rate can cut the advantage, as the dashed line shows. To try other amounts use the compound interest calculator.
A concrete example: interest on an eToro balance
Data from eToro's official pages, checked on 2 October 2026. They can change: always verify on the site before deciding.
- What it is calculated on: only the uninvested US dollar (USD) balance. A euro balance does not earn interest.
- Rates for EU residents: 3% a year for a total balance from $1 to $50,000 and 3.80% above $50,000. So 3.8% does not apply to 10,000 €.
- How to activate: from the eToro Club dashboard, switching "Interest on USD Cash Balance" to "Active".
- Calculation and payment: interest is calculated daily and paid monthly, no later than the fifth business day of the following month. Interest left in the balance earns interest in turn.
- Not guaranteed: eToro states that the programme may be renewed at a lower rate.
Conversion cost and currency risk. To use euros in the dollar account you convert them, and eToro's page shows a base fee of 0.75% for Europe, with Club-tier discounts. On 10,000 € that is about 75 €, roughly three months of interest at 3%, and the same again on the way back. Holding dollars also means your value in euros moves with the EUR/USD rate. It may make sense only if you can leave the money untouched for a long time and accept that swings; if you may need it soon, a euro account is usually simpler. Details in depositing euros on eToro and what conversion costs.
If you want to see the conditions on the platform, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.
Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.
Frequently asked questions
What is the difference between a fixed and a variable rate?
A fixed rate is set for the whole term, so you know the yield in advance but your money is usually locked. A variable rate can change at any time, which gives flexibility but no certainty about what you will earn.
Is money in a savings account safe?
It depends on who holds it. In the EU, bank deposits are covered by a guarantee up to 100,000 € per depositor per bank. Brokers, wallets, funds and bonds follow different rules and some carry no guarantee on capital, so check who the issuer is and what applies.
What happens when a promotional rate ends?
The rate usually drops to the standard one, which can be much lower. Check the end date and the standard rate before opening, and note the date to review the account.
Is the interest taxed?
Yes, under the rules of your country, and the rate can differ by product. With a foreign provider you may have to declare income yourself and pay other yearly charges: ask an accountant. For Italy, for example, the 12.5% and 26% rates in the table above come from the national tax rules (Agenzia delle Entrate): check the current ones.
Is interest on an eToro balance guaranteed?
No. The rate is variable and can fall; eToro itself states that the programme may be renewed at a lower rate.
Can I earn interest on a euro balance on eToro?
According to eToro, interest is calculated on the US dollar balance, not on the euro balance.