Minimal growth in savings account interest rates expected next year

Savings account interest rates may rise a little bit further in 2024, before stabilizing afterwards, financial comparison site Geld.nl predicted. This year, savings interest rates rose to the highest level in more than ten years.

On average, savers now receive 2.38 percent interest on their savings. The last time savings interest rates were this high was in 2012. A year ago, savers received an average interest rate of only 0.62 percent.

The fact that banks sharply increased their savings rates is due to interest rate increases by the European Central Bank (ECB). In this way, the central bank tries to curb high inflation.

But the ECB's last interest rate hike dates back to September. Inflation has already fallen considerably and is expected to slowly move towards the 2 percent ECB target.

“The ECB interest rate will probably remain at the same level for a while and may even fall again at the end of 2024," Geld.nl wrote this week in a new report regarding expectations for interest rates. "As a result, banks will hardly increase savings rates and may even reduce them somewhat at the end of 2024."