Savings account interest rates rise to highest level in ten years

Savings interest rates in the Netherlands have risen to their highest levels in over a decade. This observation comes from the financial comparison website, Geld.nl, after almost all banks increased their savings rates in recent weeks. This move was in response to the latest interest rate hike by the European Central Bank (ECB).

On average, savers now receive an interest rate of 2.24 percent on their savings. This marks the first time since 2012 that the average interest rate has surpassed 2 percent. According to Geld.nl, the highest interest one can get on a savings account has even exceeded 3 percent.

"This is largely because, in recent weeks, foreign banks have been competitively trying to offer the highest savings rates," said Geld.nl expert Amanda Bulthuis. "For instance, today both MeDirect from Malta and Nordax from Sweden increased their rates to 3.06 percent."

Even the larger Dutch banks have been noticeably increasing their interest rates lately. For example, both Rabobank and SNS Bank are offering up to 1.7 percent interest on savings accounts. Geld.nl also noted that some banks are running promotions to attract new customers. Open Bank, for instance, offers a temporary 3.65 percent interest rate for the first six months, according to the comparison site.

Bulthuis said she believes that savings interest rates will continue to rise in the coming period. "Banks set their savings rates based on the interest rates of the ECB," she explains. ECB's rates are expected to remain high for a while, as recently stated by Klaas Knot, the president of the Dutch central bank (DNB). "This implies that savings interest rates will remain elevated, and I anticipate they will increase even further," Bulthuis added.