As Interest rates rise, do savings rates also rise significantly?

[sadie]

If we have a scenario where interest rates rise by a few percentage points will deposit rates also rise significantly too?

Currently interest rates are very low, so savings rates are roughly 4% at the 'highest'. So the ECB rate went to 3 or 4% would savings rates then got to like 6% or such like, or is that too simplistic?

If I am stress-testing myself on mortgage interest rates, and I manage to keep some significant savings - wouldn't I be able to offset the higher mortgage repayments somewhat because I could achieve better rates on my savings?

 

[Lightning]

Higher ECB rates means higher savings rates. Lower ECB rates means lower savings rates.

For example, a few years ago, regular saver accounts paid up to 7.00% AER while ECB rates were aprox. 4.25% AER. Regular saver accounts now pay up to 4.10% AER.

Deposit rates and ECB rates don't necessarily move directly proportionally to each other but there is a strong collation.