More Dutch households put their savings in foreign banks

Dutch households are increasingly putting their money in bank accounts abroad. Savers are particularly opting for countries with higher savings interest rates, according to third-quarter figures from De Nederlandsche Bank (DNB) and the European Central Bank (ECB).

At the end of September 2023, Dutch households had 10.5 billion euros in bank accounts in eurozone countries, excluding the Netherlands. That is almost double the 5.6 billion euros of two years ago. About 1.8 percent of Dutch households’ total combined bank balance is now held by foreign banks. In the same period, Dutch households’ money in Dutch banks increased by much less, relatively speaking, rising 7.9 percent to 566.7 billion euros at the end of September 2023.

Netherlands residents putting money in banks abroad traditionally opt for neighboring countries like Germany and Belgium. “But recently, countries offering high savings interest rates are emerging,” DNB said. In absolute amounts, the most Dutch savings abroad are in Germany (2.3 billion euros,” Spain, and Estonia (both 1.5 billion euros). Relatively, savings at banks in the Baltics, Italy, and Greece increased the most.

In total, Netherlands residents had 577.2 billion euros in bank accounts in the Netherlands and abroad. That puts the Netherlands in seventh place within the eurozone regarding average bank balance per inhabitant. Approximately 460 billion euros are in savings accounts, the rest in current accounts.

In recent years, there was little to no difference in the interest rates on savings and current accounts, so more Dutch people allowed the balance on their checking accounts to increase. “Now that the interest rates have increased and with it the interest difference between checking accounts and easily withdrawable savings accounts, households have moved approximately 15 billion euros from their checking accounts to savings accounts in the past year,” DNB said.