The ECB keeps interest rates unchanged, and the yield of the Savings Portfolio in euros remains at 1.85% (July 2026)

The ECB keeps interest rates unchanged.

Yesterday, the ECB left interest rates unchanged at 2.25%. It is important to remember that, after years of near-zero or negative rates, the ECB began a very rapid tightening cycle: rates rose from -0.50% in July 2022 to a peak of 4.00% in September 2023. It subsequently began a phase of gradual easing that brought rates down to 2.00%, before the recent increase to 2.25% in June, prompted by renewed inflation concerns.

The decision to keep rates unchanged was unanimous, although some members considered an immediate increase. Christine Lagarde reiterated that decisions will be made “meeting by meeting”, based on incoming data. There is now a clear reluctance to provide forecasts about the future path of interest rates, known as forward guidance. During the post-pandemic period, this led central banks to prolong their forecasting errors for fear of contradicting themselves in front of the markets.

Inflation fell in June and came in below expectations. This probably discouraged the ECB from implementing another rate increase. Meanwhile, the truce between the US and Iran has broken down, and it seems clear that the ECB is prepared to raise rates again in September if oil prices remain at their current levels. There are concerns that a persistent increase in energy costs could spread throughout the economy, also affecting wages and service prices.

The ECB acknowledges that inflation risks are once again tilted to the upside, particularly due to the energy component, and that the full impact of this shock may still be yet to come. Under this scenario, inflation could remain above the 2% target for longer than expected, potentially until 2027.

From a macroeconomic perspective, the eurozone is showing some resilience, but also signs of fragility. The European economy is starting from a more stagnant position than the US economy and appears more vulnerable to the ongoing tensions in the Gulf.

The yield of the Savings Portfolio in euros remains at 1.85%

The ECB’s decision means that the variable yield of inbestMe’s Savings Portfolio in euros remains at 1.85%.*

In general, the return of the Savings Portfolio will not be enough to beat inflation. However, its performance compared with traditional bank deposits is noteworthy.

Since the portfolio was launched and up to the end of June 2026, its cumulative return has been 9.1%, compared with an average of 7.2% for bank deposits with maturities of up to one year. This represents an advantage of 1.9 percentage points for our clients—a significant difference considering the relatively short period.

If we convert these figures into annualised returns, the Savings Portfolio has delivered an annualised return of 2.5%, compared with 2.0% for the average bank deposit with a maturity of up to one year, an advantage of 0.5 percentage points.

One of the advantages of the Savings Portfolio is that its return automatically adjusts to the ECB’s interest rates. This allows savers to access one of the most competitive returns on the market without having to move from bank to bank in search of the best offer, which often depends on temporary promotions.

eyond returns, inbestMe’s Savings Portfolios offer structural advantages that traditional deposits do not:

• Automatic compound interest: returns accumulate without the need for periodic renewals. The return is not linked to any commercial offer or limited to a specific period. It is, however, variable and may rise—as it is doing now—or fall depending on the ECB. Its characteristics mean that investors do not need to constantly negotiate or look for alternatives.
• Tax efficiency: taxes are not paid until the investment is liquidated, allowing taxation to be deferred until the funds are withdrawn, which may be much later.
• Transferability: the investment can be transferred to other fund portfolios without an immediate tax charge, taking advantage of the fund transfer regime.
• Available from €1,000 with no conditions: some bank deposits require large amounts or special conditions, such as transferring your salary or setting up direct debits.
• No penalties or fixed term: a deposit may be subject to penalties if the agreed term is not completed, or its interest rate may be limited to a specific—and sometimes short—promotional period. The Savings Portfolio has no fixed term or penalties. Its interest rate is not linked to a promotion but to the ECB’s interest rate. The money is available within approximately five working days.

The portfolio’s metrics are excellent, as shown in the table above, and its flexibility makes it a highly efficient savings option for most clients, whether to optimise very short-term savings or an emergency fund.

However, it may not be sufficient for other medium- or long-term goals.

Which portfolio is best suited to your situation?

As we have seen, Savings Portfolios are an ideal solution for liquidity and short-term emergency funds. However, on their own, they may not be sufficient to beat inflation over the long term. Their return will normally be a few tenths of a percentage point—or as much as one percentage point—below inflation. Depending on your investment horizon and goals, inbestMe offers complementary alternatives that may be more suitable:

• Target Return Portfolios and Bond Portfolios—in euros and US dollars: for investors who want to lock in a return for a longer period and are able to accept slightly more risk or commit to a specific time frame. A few months ago, we launched new Target Portfolios using funds, with a cumulative target return of up to 19% at the time of writing.
• Index Fund Portfolios: the most suitable option if you have a medium- or long-term investment horizon and need to clearly outperform inflation, with expected annualised returns of between 3% and 7%.
• Pension Plan Portfolios: the ideal choice for retirement planning, offering immediate tax deductions on contributions, similar expected annualised returns and an investment strategy that evolves according to your age and needs.

To find out which portfolio is best suited to you, discover your personalised investment plan at inbestMe. You should also consider whether it makes sense to separate your goals by combining several portfolios, allowing you to plan your entire financial life—from your most immediate savings needs to long-term wealth planning.