The ECB raises rates again by 0.25%. The Euro Savings Portfolio yield rises to 2.10%

Today, the ECB has once again raised its three key interest rates by 25 basis points. Following this adjustment, the deposit facility rate stands at 2.50% (up from 2.25%), the main refinancing operations rate at 2.65% and the marginal lending facility rate at 2.90%, effective from 16 September. This is the second consecutive increase after June’s move, which ended almost three years without rate rises.

The Governing Council has reiterated that it is not pre-committed to a particular path for interest rates and will continue to make decisions meeting by meeting, based on the data. The ECB’s message has been clear: inflation will remain above 2% for longer than previously expected, and the institution is prepared to act again without providing binding forward guidance.

Euro area inflation rose to 3.3% in August from 2.9% in July, while core inflation stood at 2.4%. Headline inflation has now remained above 2.5% for five consecutive months and is moving further away from the ECB’s 2% target. The decision comes at a time when Europe remains particularly vulnerable in terms of energy supply. Prolonged instability in the Middle East and disruptions to flows through the Strait of Hormuz continue to push oil and gas prices higher, once again highlighting the continent’s structural dependence on fossil fuel imports.

In its new projections, the ECB has left its average inflation forecast for 2026 unchanged at 3.0%, but has revised its estimates for the following years upwards: to 2.5% in 2027, from the previous 2.3%, and to 2.1% in 2028, from the previously forecast 2.0%. The revision confirms that inflation will take longer than expected to return to the 2% target. Growth forecasts have also been raised to 0.9% in 2026, 1.4% in 2027 and 1.5% in 2028, confirming that the euro area economy is proving more resilient than expected.

The ECB remains the central bank leading the shift towards a more restrictive policy. The Federal Reserve is keeping the federal funds target range at 3.50%-3.75% following the cuts at the end of 2025, while the Bank of Japan raised its policy rate to 1% in June.

The Savings Portfolio yield rises to 2.10%

Today’s ECB decision means that the variable yield on the Euro Savings Portfolio from inbestMe automatically rises from 1.85% to 2.10%.*

*Important note: the increase is not immediate. It will take place a few days after the new rates come into effect on 16/9/2026, as the positions in the funds that make up the portfolio are renewed.

In general, the Savings Portfolio’s return will undoubtedly not be enough to beat inflation. However, the comparison between its performance and that of traditional bank deposits is revealing.

Since the portfolio was launched (to the end of August 2026), its cumulative return has been 9.4%, compared with 7.5% for the average return on deposits with terms of up to one year, representing a 1.9 percentage point advantage for our clients, a notable difference considering the short period involved.

If we convert these figures into annualised returns, the Savings Portfolio has delivered an annualised return of 2.4%, compared with 2.0% for the average bank deposit with a term of up to one year: 0.4 percentage points more.

The Savings Portfolio is a highly efficient option that avoids having to move from bank to bank in search of the latest deposit offer, which is usually temporary. The portfolio has outperformed deposits every year since its launch: by 0.8 percentage points in 2023, 1.1 in 2024, 0.1 in 2025 and 0.1 so far in 2026, with volatility of 0.5% and a maximum drawdown of just -0.2%.

Beyond returns, however, inbestMe Savings Portfolios offer structural advantages that traditional deposits do not:

• Automatic compound interest: returns accumulate without the need for periodic renewals. Returns are not tied to any commercial offer or limited in time. They are, however, variable and can move up (as they are now) or down depending on the ECB. These features mean that we do not have to constantly negotiate or search for alternatives.
• Tax efficiency: tax is not due until the investment is liquidated, deferring taxation until withdrawal, which may be a long way off.
• Transferability: the investment can be transferred to other fund portfolios without triggering tax, taking advantage of the tax-neutral 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 and no fixed term: a deposit may be subject to penalties if its term is not met, or the interest rate may be limited to a sometimes short period and tied to a promotion. The Savings Portfolio has no fixed terms or penalties. The interest rate is not linked to a promotion but to the ECB’s interest rate. The money is available in around 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 best suits your situation?

We have seen that Savings Portfolios are the ideal solution for liquidity and a short-term emergency fund. 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 time 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 secure a return for longer and can assume slightly more risk or commit to a set term.
• Index Fund Portfolios: the most suitable option if your horizon is medium or long term and you need to clearly beat inflation, with expected annualised returns of 3% to 7%.
• Pension Plan Portfolios: the optimal choice for retirement planning, with immediate tax deductions on contributions and similar expected annualised returns that evolve with your age and needs.

To find out which portfolio is best for you, discover your personalised investment plan at inbestMe. Also consider whether it is worth separating your goals by combining several portfolios to plan your entire financial life, from your most immediate savings needs to long-term wealth planning.