Dutch banks raise interest rates
After years of Dutch banks offering little to no interest on savings accounts, the past two months have seen a number of major banks announce interest rate hikes for customers. Here’s everything we know so far.
Why are Dutch banks suddenly raising their interest rates?
Interest rate in the Netherlands have been set at 0% for several years now, but after the European Central Bank (ECB) announced higher interest rates earlier this year, Dutch banks were encouraged to make a change, finally announcing lower interest rates. above 0% interest for savings accounts.
Since November 2, in an attempt to combat the high rates of inflation seen across Europe – the Netherlands recently recorded an inflation rate of 14.3% – the ECB raised its interest rate on the main refinancing operations, the interest rates on the marginal lending facility and the deposit facility by 0.75 percentage point, to 2, 2.25 and 1 .5% respectively.
Which banks in the Netherlands offer interest on savings?
So far, a number of major banks in the Netherlands have announced changes to their interest rates. These include:
- ABN AMRO
- ASN Bank
The rules vary depending on your bank, but the new rates will come into effect in December 2022.
What are my bank’s new interest rates?
Wondering if these new rates will apply to your bank account or not? This is what we know so far about rising interest rates.
Interest rates at Rabobank, ABN AMRO and ING
Rabobank was the first to announce that it would raise interest rates before the end of the year. From December 1, a variable interest rate of 0.25% will apply to all savings and investment accounts, significantly higher than the rate of 0.01 that the bank currently offers for accounts up to at 100,000 euros. If you have a so-called RegenboogRekening – an account that parents can create for their child – the rate will increase to 0.35 per cent.
ABN AMRO and ING were quick to follow in Rabobank’s footsteps, raising their interest rates from 0% to 0.25%. At ABN AMRO, interest will be available for accounts up to €1 million, while at ING it will only apply to accounts up to €10,000. Beyond this amount, the interest rate will be set at 0.15% for accounts between 10,000 and 1 million euros, and at 0% for accounts over 1 million euros.
Interest rates at SNS, ASN and RegioBank
Last I heard, three other smaller Dutch banks – SNS, ASN Bank and RegioBank – are also confirming positive interest rates for customers. From next month, RegioBank and SNS will both offer their customers interest rates of 0.25% for accounts up to 25,000 euros. At ASN Bank, an interest rate of 0.2% will apply to accounts with an amount less than or equal to this.
Larger savings accounts will benefit from slightly lower interest rates (0.15% for accounts between 25,000 and 50,000 euros and 0% for accounts above 50,000 euros). All three banks currently have interest rates of 0 or 0.1%.
International banks always offer the highest interest rates
While Dutch banks have not only abolished their negative interest rates, but are finally offering their customers positive interest rates on savings accounts, RTL News reports that international bank interest rates are even higher – although at this stage the differences are minimal.
“You will certainly not become rich, with a maximum of 85 euros per year [available] for 10,000 euros in savings,” writes the Dutch news site. Of all the Dutch banks, LeasePlan Bank seems to offer the highest rates (0.5%).