Dutch banks lag as European one-year deposit rates hit 3%

A renewed interest-rate battle on the European savings market has pushed term-deposit rates sharply higher, while Dutch savers are being left behind as domestic banks keep rates unchanged. For an average Dutch saver with a 50,000-euro balance, this gap translates into an opportunity cost of nearly 500 euros per year relative to top-paying foreign alternatives.

Across Europe, banks are now offering 3 percent a year or more on fixed-term deposits ranging from one to five years, with one-year deposits reaching the psychological 3.00 percent threshold for the first time since December 2024.

After relatively cautious increases earlier in the year, rates accelerated in April as banks responded to rising capital-market yields. The objective is to lock in stable funding, with particularly strong increases in medium-term maturities.

By contrast, major Dutch banks have not participated in this upward movement. With ample liquidity on their balance sheets, they have left rates for loyal savers unchanged. As a result, the gap between Dutch deposit rates and the best available international offers has widened to nearly one percentage point on many maturities.

Jasper Berkhout, a researcher at Raisin Nederland, said the recent increases reflect expectations that capital-market rates will remain elevated for longer.

“The ongoing rise in deposit rates shows that banks are anticipating a scenario in which capital market rates will remain high for longer,” Berkhout said. “Especially on the terms of 1 and 2 years we see a significant catch-up. The psychological barrier of 3 percent for 1 year fixed is being touched. That the compensation for only 12 months now competes with that of 5 years is a rare phenomenon that gives savers a lot of flexibility to secure returns on the shorter term without conceding on the interest compensation.”