Skip to main content
Home

Main navigation

  • Top stories
  • Health
  • Crime
  • Politics
  • Business
  • Tech
  • Culture
  • Sports
  • Weird
  • 1-1-2
Image
The Zuidas, Amsterdam’s large commercial business district, was virtually abandoned. 19 March 2020
The Zuidas, Amsterdam’s large commercial business district, was virtually abandoned. 19 March 2020 - Credit: Jacqueline Tellinga / Supplied to NL Times
Business
Politics
overdrafts
interest rate
low interest rates
ABN Amro
Rabobank
SNS Bank
Finance Minister
Wopke Hoekstra
Coronavirus
Loans
savings
Saturday, 4 April 2020 - 13:44
Share this:
  • facebook
  • twitter
  • linkedin
  • whatsapp
  • reddit

Finance minister calls on banks to lower interest on overdrafts

Finance Minister Wopke Hoekstra has called on Dutch banks to reduce the interest rates they charge on overdraft payments in a new move designed to financially support consumers in the wake of the coronavirus crisis. In an interview, Hoekstra told De Telegraaf newspaper that supporting people “is evidently about reducing those percentages,” which are currently “very substantial.”

While interest rates have remained low on savings accounts and loans, overdraft payments on the other hand have been subject to considerably higher interest rates, ordinarily sitting at above 10 percent. “But now we live in different times,” Hoekstra adds with regards to the economic uncertainty brought about by the coronavirus crisis.

“Now it is extra important to make sure people don't get into deep trouble.”

In spite of the move, Hoekstra nevertheless cautions that a low-interest environment can encourage poor lending and leave people under a mountain of debt. "Of course I am in favor of people paying reasonable percentages for overdrafts and no more," Hoekstra explained. “But I also think that it’s important that banks and lenders ensure that people do not easily get into debt because of low rates.”

Already, the first banks have begun responding to the minister’s directive, with Rabobank, ABN AMRO and SNS Bank all having lowered overdraft rates on Friday. Rabobank, for example, lowered the interest rate it charges on overdrawn accounts from 12.9 to 9.9 percent, while SNS Bank dropped its rate from 11 to 9 percent.

Follow us:

Latest stories

  • Signal failure briefly halts train traffic around A'dam; NS warns of significant delays
  • Over 75% drop in fraud with Marktplaats payment requests
  • Gov't wants to keep crisis asylum shelters open for longer
  • Small Limburg train station named the country’s favorite
  • Matching medicine dosage to patient's DNA can cut side effects 30%: LUMC
  • Dutch airports' traveler numbers not yet back to pre-pandemic levels in 2022

Top stories

  • Signal failure briefly halts train traffic around A'dam; NS warns of significant delays
  • Matching medicine dosage to patient's DNA can cut side effects 30%: LUMC
  • Dutch airports' traveler numbers not yet back to pre-pandemic levels in 2022
  • Dutch parliamentarians support €57 rent reduction for low-income households
  • European office to gather proof of war crimes in Ukraine will set up in The Hague
  • Nine suspects arrested in Netherlands for 50 ATM bombings in Germany

© 2012-2023, NL Times, All rights reserved.

Footer menu

  • Privacy
  • Contact
  • Partner content